Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 12, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | RBB BANCORP | ||
Entity Central Index Key | 0001499422 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 19,960,421 | ||
Entity Public Float | $ 328,999,122 | ||
Entity Interactive Data Current | Yes | ||
Entity Tax Identification Number | 27-2776416 | ||
Entity File Number | 001-38149 | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Address, Address Line One | 1055 Wilshire Blvd. | ||
Entity Address, Address Line Two | 12th floor | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90017 | ||
City Area Code | 213 | ||
Local Phone Number | 627-9888 | ||
Title of each class | Common Stock, No Par Value | ||
Trading Symbol | RBB | ||
Name of exchange on which registered | NASDAQ | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Shareholders, scheduled to be held on May 13, 2020, are incorporated by reference into Part III of this Report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 114,763,000 | $ 147,685,000 |
Federal funds sold and other cash equivalents | 67,000,000 | |
Cash and cash equivalents | 181,763,000 | 147,685,000 |
Interest-earning deposits in other financial institutions | 600,000 | 600,000 |
Securities: | ||
Available for sale | 126,069,000 | 73,762,000 |
Held to maturity (fair value of $8,632 and $9,940 at December 31, 2019 and December 31, 2018, respectively) | 8,332,000 | 9,961,000 |
Mortgage loans held for sale | 108,194,000 | 434,522,000 |
Loans held for investment: | ||
Real estate | 1,852,206,000 | 1,762,864,000 |
Commercial and other | 349,391,000 | 387,474,000 |
Total loans | 2,201,597,000 | 2,150,338,000 |
Unaccreted discount on acquired loans | (5,067,000) | (9,229,000) |
Deferred loan costs (fees), net | 404,000 | 906,000 |
Total loans, net of deferred loan fees | 2,196,934,000 | 2,142,015,000 |
Allowance for loan losses | (18,816,000) | (17,577,000) |
Net loans | 2,178,118,000 | 2,124,438,000 |
Premises and equipment | 16,813,000 | 17,307,000 |
Federal Home Loan Bank (FHLB) stock | 15,000,000 | 9,707,000 |
Net deferred tax assets | 2,326,000 | 4,642,000 |
Other real estate owned (OREO) | 293,000 | 1,101,000 |
Cash surrender value of life insurance (BOLI) | 34,353,000 | 33,578,000 |
Goodwill | 58,563,000 | 58,383,000 |
Servicing assets | 17,083,000 | 17,370,000 |
Core deposit intangibles | 6,100,000 | 7,601,000 |
Accrued interest and other assets | 34,928,000 | 33,345,000 |
Total assets | 2,788,535,000 | 2,974,002,000 |
Deposits: | ||
Noninterest-bearing demand | 458,763,000 | 438,764,000 |
Savings, NOW and money market accounts | 537,490,000 | 579,247,000 |
Time deposits $250,000 and under | 655,303,000 | 532,395,000 |
Time deposits over $250,000 | 597,382,000 | 593,635,000 |
Total deposits | 2,248,938,000 | 2,144,041,000 |
Reserve for unfunded commitments | 826,000 | 688,000 |
FHLB advances | 0 | 319,500,000 |
Long-term debt, net of debt issuance costs | 104,049,000 | 103,708,000 |
Subordinated debentures | 9,673,000 | 9,506,000 |
Accrued interest and other liabilities | 17,359,000 | 21,938,000 |
Total liabilities | 2,380,845,000 | 2,599,381,000 |
Commitments and contingencies - Note 7 and 13 | ||
Shareholders' equity: | ||
Preferred Stock - 100,000,000 shares authorized, no par value; none outstanding | ||
Common Stock - 100,000,000 shares authorized, no par value; 20,030,866 shares issued and outstanding at December 31, 2019 and 20,000,022 shares at December 31, 2018 | 290,395,000 | 288,610,000 |
Additional paid-in capital | 4,938,000 | 5,659,000 |
Retained earnings | 112,046,000 | 81,618,000 |
Non-controlling interest | 72,000 | 72,000 |
Accumulated other comprehensive income (loss), net | 239,000 | (1,338,000) |
Total shareholders’ equity | 407,690,000 | 374,621,000 |
Total liabilities and shareholders’ equity | $ 2,788,535,000 | $ 2,974,002,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 8,632 | $ 9,940 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, par value | ||
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | ||
Common stock, shares issued | 20,030,866 | 20,000,022 |
Common stock, shares outstanding | 20,030,866 | 20,000,022 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 135,159,000 | $ 97,480,000 | $ 70,289,000 |
Interest on interest-earning deposits | 1,785,000 | 1,002,000 | 940,000 |
Interest on investment securities | 2,652,000 | 2,351,000 | 1,406,000 |
Dividend income on FHLB stock | 1,079,000 | 650,000 | 472,000 |
Interest on federal funds sold and other | 1,050,000 | 632,000 | 997,000 |
Total interest income | 141,725,000 | 102,115,000 | 74,104,000 |
Interest expense: | |||
Interest on savings deposits, now and money market accounts | 4,886,000 | 4,408,000 | 2,382,000 |
Interest on time deposits | 29,347,000 | 12,548,000 | 7,891,000 |
Interest on subordinated debentures and long-term debt | 7,698,000 | 4,083,000 | 3,629,000 |
Interest on other borrowed funds | 2,930,000 | 2,606,000 | 36,000 |
Total interest expense | 44,861,000 | 23,645,000 | 13,938,000 |
Net interest income | 96,864,000 | 78,470,000 | 60,166,000 |
Provision (recapture) for credit losses | 2,390,000 | 4,469,000 | (1,053,000) |
Net interest income after provision (recapture) for credit losses | 94,474,000 | 74,001,000 | 61,219,000 |
Noninterest income: | |||
Service charges, fees and other | 4,072,000 | 2,679,000 | 2,111,000 |
Gain on sale of loans | 9,893,000 | 7,126,000 | 9,318,000 |
Loan servicing fees, net of amortization | 3,383,000 | 850,000 | 722,000 |
Recoveries on loans acquired in business combinations | 143,000 | 1,385,000 | 84,000 |
Unrealized gain on equity investments | 147,000 | ||
Increase in cash surrender value of life insurance | 775,000 | 797,000 | 824,000 |
Gain on sale of securities | 7,000 | 5,000 | |
(Loss) gain on sale of OREO | (106,000) | 142,000 | |
Gain on sale of fixed assets | 6,000 | ||
Total noninterest income | 18,320,000 | 12,842,000 | 13,201,000 |
Noninterest expense: | |||
Salaries and employee benefits | 32,909,000 | 23,254,000 | 16,821,000 |
Occupancy and equipment expenses | 9,750,000 | 4,554,000 | 2,940,000 |
Data processing | 3,699,000 | 2,323,000 | 1,622,000 |
Legal and professional | 1,832,000 | 1,714,000 | 331,000 |
Office expenses | 1,257,000 | 890,000 | 679,000 |
Marketing and business promotion | 1,308,000 | 1,143,000 | 837,000 |
Insurance and regulatory assessments | 900,000 | 951,000 | 799,000 |
Core deposit premium | 1,501,000 | 575,000 | 355,000 |
OREO expenses | 337,000 | 24,000 | 28,000 |
Merger expenses | 471,000 | 1,658,000 | 37,000 |
Other expenses | 3,509,000 | 3,551,000 | 3,174,000 |
Total noninterest expense | 57,473,000 | 40,637,000 | 27,623,000 |
Income before income taxes | 55,321,000 | 46,206,000 | 46,797,000 |
Income tax expense | 16,112,000 | 10,101,000 | 21,269,000 |
Net income | $ 39,209,000 | $ 36,105,000 | $ 25,528,000 |
Net income per share | |||
Basic | $ 1.96 | $ 2.11 | $ 1.81 |
Diluted | 1.92 | 2.01 | 1.68 |
Cash dividends declared per common share | $ 0.40 | $ 0.35 | $ 0.38 |
Weighted-average common shares outstanding | |||
Basic | 20,017,306 | 17,151,222 | 14,078,281 |
Diluted | 20,393,424 | 17,967,653 | 15,238,365 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 39,209 | $ 36,105 | $ 25,528 |
Other comprehensive income (loss): | |||
Unrealized gains (losses) on securities available for sale, Change in unrealized gains (losses) | 2,248 | (1,266) | (176) |
Unrealized gains (losses) on securities available for sale, Reclassification of gains recognized in net income | (7) | (5) | |
Unrealized gains (losses) on securities available for sale | 2,241 | (1,271) | (176) |
Related income tax effect, Change in unrealized (gains) losses | (666) | 376 | 72 |
Related income tax effect, Reclassification of gains recognized in net income | 2 | ||
Related income tax effect | (664) | 376 | 72 |
Total other comprehensive income (loss) | 1,577 | (895) | (104) |
Total comprehensive income | $ 40,786 | $ 35,210 | $ 25,424 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Non-Controlling Interest | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2016 | $ 181,585 | $ 142,651 | $ 8,417 | $ 30,784 | $ (267) | |
Beginning balance, shares at Dec. 31, 2016 | 12,827,803 | |||||
Net income | 25,528 | 25,528 | ||||
Stock-based compensation | 779 | 779 | ||||
Cash dividend | (5,118) | (5,118) | ||||
Stock options exercised, net of expense recognized | 2,296 | $ 3,066 | (770) | |||
Stock options exercised, net of expense recognized, shares | 223,334 | |||||
Issuance of common stock, net of issuance costs | 60,210 | $ 60,210 | ||||
Issuance of common stock, net of issuance costs, shares | 2,857,756 | |||||
Other comprehensive (loss) income, net of taxes | (104) | (104) | ||||
Reclassification of stranded tax effects from change in tax rates | 72 | (72) | ||||
Ending balance at Dec. 31, 2017 | 265,176 | $ 205,927 | 8,426 | 51,266 | (443) | |
Ending balance, shares at Dec. 31, 2017 | 15,908,893 | |||||
Net income | 36,105 | 36,105 | ||||
Stock-based compensation | 684 | 684 | ||||
Restricted stock awarded, shares | 43,425 | |||||
Cash dividend | (5,753) | (5,753) | ||||
Stock options exercised, net of expense recognized | 9,629 | $ 13,080 | (3,451) | |||
Stock options exercised, net of expense recognized, shares | 1,035,942 | |||||
Issuance of common stock for acquisition | 69,603 | $ 69,603 | ||||
Issuance of common stock for acquisition, shares | 3,011,762 | |||||
Non-controlling interest | 72 | $ 72 | ||||
Other comprehensive (loss) income, net of taxes | (895) | (895) | ||||
Ending balance at Dec. 31, 2018 | $ 374,621 | $ 288,610 | 5,659 | 81,618 | 72 | (1,338) |
Ending balance, shares at Dec. 31, 2018 | 20,000,022 | 20,000,022 | ||||
Net income | $ 39,209 | 39,209 | ||||
Stock-based compensation | 689 | 689 | ||||
Restricted stock vested | $ 425 | (425) | ||||
Cash dividend | (8,033) | (8,033) | ||||
Stock options exercised, net of expense recognized | $ 2,817 | $ 3,802 | (985) | |||
Stock options exercised, net of expense recognized, shares | 200,629 | 200,629 | ||||
Repurchase of common stock | $ (3,190) | $ (2,442) | (748) | |||
Repurchase of common stock,shares | (169,785) | (169,785) | ||||
Other comprehensive (loss) income, net of taxes | $ 1,577 | 1,577 | ||||
Ending balance at Dec. 31, 2019 | $ 407,690 | $ 290,395 | $ 4,938 | $ 112,046 | $ 72 | $ 239 |
Ending balance, shares at Dec. 31, 2019 | 20,030,866 | 20,030,866 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Issuance of common stock, net of issuance costs | $ 5,518 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net income | $ 39,209,000 | $ 36,105,000 | $ 25,528,000 |
Adjustments to reconcile net income to net cash from Operating activities: | |||
Depreciation and amortization of premises, and equipment | 1,914,000 | 1,833,000 | 525,000 |
Net accretion of securities, loans, deposits, and other | (2,845,000) | (1,754,000) | (4,801,000) |
Unrealized gain on equity securities | (147,000) | ||
Amortization of investment in affordable housing tax credits | 900,000 | 644,000 | 316,000 |
Amortization of intangible assets | 4,856,000 | 3,302,000 | 1,845,000 |
Provision (recapture) for loan losses | 2,390,000 | 4,469,000 | (1,053,000) |
Stock-based compensation | 689,000 | 684,000 | 779,000 |
Deferred tax benefit | 1,503,000 | (383,000) | 5,083,000 |
Gain on sale of securities | (7,000) | (5,000) | |
Gain on sale of loans | (9,893,000) | (7,126,000) | (9,318,000) |
Loss (gain) on sale of OREO | 106,000 | (142,000) | |
Gain on sale of fixed assets | (6,000) | ||
Increase in cash surrender value of life insurance | (775,000) | (797,000) | (824,000) |
Loans originated and purchased for sale, net | (77,514,000) | (413,450,000) | (254,629,000) |
Proceeds from loans sold | 521,594,000 | 301,894,000 | 265,497,000 |
Other items | (5,506,000) | (10,064,000) | (23,000) |
Net cash provided by (used in) operating activities | 476,468,000 | (84,648,000) | 28,783,000 |
Securities available for sale: | |||
Purchases | (197,386,000) | (74,171,000) | (29,557,000) |
Maturities, prepayments and calls | 141,537,000 | 64,008,000 | 4,353,000 |
Sales | 6,143,000 | 44,591,000 | 0 |
Securities held to maturity: | |||
Maturities, prepayments and calls | 1,590,000 | 1,100,000 | |
Redemption of Federal Home Loan Bank stock | 808,000 | ||
Purchase of Federal Home Loan Bank stock and other equity securities, net | (7,741,000) | (11,077,000) | (837,000) |
Net increase of investment in qualified affordable housing projects | (2,598,000) | (1,911,000) | (5,000,000) |
Net increase in loans | (161,426,000) | (366,415,000) | (218,897,000) |
Proceeds from sales of OREO | 1,053,000 | 257,000 | |
Purchase of bank owned life insurance | (10,000,000) | ||
Net cash paid in connection with acquisition | 25,073,000 | ||
Proceeds from sale of fixed assets | 17,000 | ||
Purchases of premises and equipment | (1,350,000) | (2,488,000) | (684,000) |
Net cash used in investing activities | (219,353,000) | (322,390,000) | (264,446,000) |
Financing activities | |||
Net (decrease) increase in demand deposits and savings accounts | (21,758,000) | (9,807,000) | 226,382,000 |
Net increase (decrease) in time deposits | 126,627,000 | 186,588,000 | (41,772,000) |
Net (decrease) increase in FHLB advances | (319,500,000) | 170,000,000 | 25,000,000 |
Cash dividends paid | (8,033,000) | (5,753,000) | (5,118,000) |
Issuance of subordinated debentures, net of issuance costs | 54,018,000 | ||
Issuance of common stock, net of issuance costs | 60,210,000 | ||
Common stock repurchased, net of repurchased costs | (3,190,000) | ||
Exercise of stock options | 2,817,000 | 9,629,000 | 2,296,000 |
Net cash (used in) provided by financing activities | (223,037,000) | 404,675,000 | 266,998,000 |
Net increase (decrease) in cash and cash equivalents | 34,078,000 | (2,363,000) | 31,335,000 |
Cash and cash equivalents at beginning of period | 147,685,000 | 150,048,000 | 118,713,000 |
Cash and cash equivalents at end of period | 181,763,000 | 147,685,000 | 150,048,000 |
Cash paid during the period: | |||
Interest paid | 45,702,000 | 19,993,000 | 13,848,000 |
Taxes paid | 14,470,000 | 9,335,000 | 16,935,000 |
Non-cash investing and financing activities: | |||
Transfer of loan to available for sale securities | 1,000,000 | ||
Transfer from loans to other real estate owned | 974,000 | 808,000 | |
Transfer of loans to held for sale, net | 107,859,000 | 186,503,000 | 165,651,000 |
Loan to facilitate OREO | 623,000 | 104,000 | 425,000 |
Net change in unrealized holding (loss) gain on securities available for sale | $ 2,241,000 | $ (1,271,000) | $ (176,000) |
Business Description
Business Description | 12 Months Ended |
Dec. 31, 2019 | |
Business Description [Abstract] | |
Business Description | NOTE 1 - BUSINESS DESCRIPTION RBB Bancorp is a financial holding company registered under the Bank Holding Company Act of 1956, as amended. RBB Bancorp’s principal business is to serve as the holding company for its wholly-owned banking subsidiaries, Royal Business Bank ("Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as "the Company". At December 31, 2019, the Company had total assets of $2.8 billion, gross consolidated loans (held for investment and held for sale) of $2.3 billion, total deposits of $2.2 billion and total stockholders' equity of $407.7 million. On July 31, 2017, the Company completed its initial public offering of 3,750,000 shares at a price to the public of $23.00 per share. The Company’s stock trades on the Nasdaq Global Select Market under the symbol “RBB”. The Bank provides business banking services to the Chinese-American communities in Los Angeles County, Orange County, Ventura County and in Las Vegas and New York City metropolitan area, including remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, Small Business Administration (“SBA”) 7A and 504 loans, mortgage loans, trade finance and a full range of depository accounts. The Company operates full-service banking offices in Arcadia, Cerritos, Diamond Bar, Irvine, Los Angeles, Monterey Park, Oxnard, Rowland Heights, San Gabriel, Silver Lake, Torrance, West Los Angeles, and Westlake Village, California; Las Vegas, Nevada; and Manhattan, Brooklyn, Flushing, and Elmhurst, New York. The Company's primary source of revenue is providing loans to customers, who are predominately small and middle-market businesses and individuals. The Company generates its revenue primarily from interest received on loans and leases and, to a lesser extent, from interest received on investment securities. The Company also derives income from noninterest sources, such as fees received in connection with various lending and deposit services, loan servicing, gain on sales of loans and wealth management services. The Company’s principle expenses include interest expense on deposits and subordinated debentures, and operating expenses, such as salaries and employee benefits, occupancy and equipment, data processing, and income tax expense. As part of the FAIC acquisition, the Company acquired FAIB Capital Corp. (FAICC) that was formed on January 29, 2014. FAICC is a real estate investment trust subsidiary of the Bank. The Company has completed five acquisitions from July 8, 2011 through October 15, 2018, including the acquisition of First American International Corp. (“FAIC”) and its wholly-owned subsidiary, First American International Bank (“FAIB”), in which the FAIC acquisition closed on October 15, 2018. FAIB operated three branches in Queens, two in Manhattan, and two in Brooklyn, New York with an operating center and loan production offices in Brooklyn and an administrative center in Manhattan. As part of the FAIC acquisition, the Company acquired FAIB Capital Corp. (“FAICC”) that was formed on January 29, 2014. FAICC is a real estate investment trust subsidiary of the Bank. See Note 3 – Acquisition, for more information about the FAIC acquisition transactions. All of the Company’s acquisitions have been accounted for using the acquisition method of accounting and, accordingly, the operating results of the acquired entities have been included in the consolidated financial statements from their respective acquisition dates. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-K and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for financial reporting. Principles of Consolidation and Nature of Operations The accompanying consolidated financial statements include the accounts of RBB Bancorp and its wholly-owned subsidiaries Royal Business Bank ("Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as "the Company". All significant intercompany transactions have been eliminated. RBB Bancorp was formed in January 2011 as a bank holding company, and in 2018 changed to a financial holding company. RAM was formed in 2012 to hold and manage problem assets acquired in business combinations. In connection with the 2018 acquisition of FAIC, the Company acquired a real estate investment trust (“REIT”) as a subsidiary of the Bank and is a New York State corporation. In addition to the REIT, the Company acquired four inactive subsidiaries: FAIC Insurance Services (a New York corporation formed in 2006), P4G8, LLC, FAIB Reacquisitions I, LLC and FAIB REO Acquisition II, LLC. FAIC Insurance services was dissolved in January 2020; the other three were dissolved in 2019. We acquired two statutory business trusts: TFC Statutory Trust in 2016 and FAIC Statutory Trust in 2018. These trusts issued trust preferred securities representing undivided preferred beneficial interests in the assets of the Trusts. The proceeds of these trust preferred securities were invested in certain securities issued by us, with similar terms to the relevant series of securities issued by the Trusts, which we refer to as subordinated debentures. RBB Bancorp has no significant business activity other than its investments in Royal Business Bank and RAM. Parent only condensed financial information on RBB Bancorp is provided in Note 22. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. It is reasonably possible our estimate of the allowance for loan losses and the fair value of mortgage servicing rights could change as actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, term federal funds sold and interest-bearing deposits in other financial institutions with original maturities of less than 90 days. Net cash flows are reported for customer loan and deposit transactions and interest-bearing deposits in other financial institutions. Cash and Due from Banks Banking regulations require that banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. The reserves required to be held as of December 31, 2019 and 2018 were $29.5 million and $24.5 million, respectively. The Company maintains amounts in due from bank accounts, which may exceed federally insured limits. The Company has not experienced any losses in such accounts. Interest-Bearing Deposits in Other Financial Institutions Interest-bearing deposits in other financial institutions not included in cash and cash equivalents are carried at cost and generally mature in one year or less. Investment Securities Investment securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities not classified as held to maturity are classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates debt securities for other-than-temporary impairment ("OTTI") on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows; OTTI related to credit loss, which must be recognized in the income statement and; OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Loans Held For Sale Mortgage loans originated or acquired and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans held for sale consist primarily of first trust deed mortgages on single-family residential properties located in California. Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of mortgage loans sold is determined by reducing the amount allocated to the servicing right, when applicable. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loans sold. Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances reduced by any charge-offs or specific valuation accounts and net of any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Loan origination fees and certain direct origination costs are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when principal or interest is past due 90 days or when, in the opinion of management, there is reasonable doubt as to collectability based on contractual terms of the loan. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan's principal balance is deemed collectible. Interest accruals are resumed on such loans only when they are brought current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to all principal and interest. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management's judgment, should be charged-off. Amounts are charged-off when available information confirms that specific loans or portions thereof, are uncollectible. This methodology for determining charge-offs is consistently applied to each segment. The Company determines a separate allowance for each portfolio segment. The allowance consists of specific and general reserves. Specific reserves relate to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status, collateral value and the probability of collecting all amounts when due. Measurement of impairment is based on the expected future cash flows of an impaired loan, which are to be discounted at the loan's effective interest rate, or measured by reference to an observable market value, if one exists, or the fair value of the collateral for a collateral-dependent loan. The Company selects the measurement method on a loan-by-loan basis except that collateral-dependent loans for which foreclosure is probable are measured at the fair value of the collateral. The Company recognizes interest income on impaired loans based on its existing methods of recognizing interest income on nonaccrual loans. Loans, for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired with measurement of impairment as described above. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan's existing rate or at the fair value of collateral if repayment is expected solely from the collateral. General reserves cover non-impaired loans and are based on historical loss rates of peer institutions for each portfolio segment, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment's historical loss experience. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in economic conditions, changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and other relevant staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit and the effect of other external factors such as competition and legal and regulatory requirements. Portfolio segments identified by the Company include real estate, commercial and other loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios, and financial performance. Certain Acquired Loans As part of business acquisitions, the Company acquires certain loans that have shown evidence of credit deterioration since origination. These acquired loans are recorded at the allocated fair value, such that there is no carryover of the seller's allowance for loan losses. Such acquired loans are accounted for individually. The Company estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan's contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Servicing Rights When mortgage and Small Business Administration ("SBA") loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Servicing fee income, which is reported on the income statement as loan servicing fees, net of amortization , Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Gains on sales of mortgage, SBA and CRE loans totaled $9.9 million, $7.1 million, and $9.3 million in 2019, 2018, and 2017, respectively. Gains on sale of mortgage loans totaled $8.2 million, $4.3 million, and $3.7 million, and gains on sale of SBA loans totaled $1.5 million, $2.8 million, and $5.6 million in 2019, 2018, and 2017 respectively. Gains on sale of CRE totaled $152,000 in 2019 and none in 2018 and 2017. Premises and Equipment Land is carried at cost. Premises, leasehold improvements and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives, which is thirty years for premises and ranges from three to ten years for leasehold improvements and equipment. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the remaining lease term, whichever is shorter. Expenditures for betterments or major repairs are capitalized and those for ordinary repairs and maintenance are charged to operations as incurred. Other Real Estate Owned Real estate acquired by foreclosure or deed in lieu of foreclosure is recorded at fair value at the date of foreclosure, establishing a new cost basis by a charge to the allowance for loan losses, if necessary. Other real estate owned is carried at the lower of the Company's carrying value of the property or its fair value, less estimated carrying costs and costs of disposition. Fair value is based on current appraisals less estimated selling costs. Any subsequent write-downs are charged against operating expenses and recognized as a valuation allowance. Operating expenses and related income of such properties and gains and losses on their disposition are included in other operating income and expenses. Goodwill and Other Intangible Assets Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill resulting from whole bank acquisitions is not amortized, but tested for impairment at least annually. The Company has selected December 31 as the date to perform the annual impairment test. Goodwill amounted to $58.6 million and $58.4 million as of December 31, 2019 and 2018, respectively, and is the only intangible asset with an indefinite life on the balance sheet. No impairment was recognized on goodwill during 2019 and 2018. Other intangible assets consist of core deposit intangible ("CDI") assets arising from whole bank acquisitions. CDI assets are amortized on an accelerated method over their estimated useful life of 8 to 10 years. CDI was recognized in the 2013 acquisition of Los Angeles National Bank and in the 2016 acquisition of TFC Holding Company and in the 2018 acquisition of FAIC. The unamortized balance as of December 31, 2019 and 2018 was $6.1 million and $7.6 million, respectively. Accumulated amortization as of December 31, 2019 and 2018 was $3.1 million and $1.6 million, respectively. CDI amortization expense was $1.5 million, $575,000, and $355,000 in 2019, 2018 and 2017, respectively. Estimated CDI amortization expense for the next 5 years is as follows (dollars in thousands): (dollars in thousands) Year ending December 31: 2020 $ 1,285 2021 1,056 2022 879 2023 749 2024 638 Thereafter 1,493 Total $ 6,100 Bank Owned Life Insurance The Company has purchased life insurance policies on a select group of employees and directors. Bank owned life insurance (“BOLI”) is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Increases of the cash value of these policies, as well as insurance proceeds received, are recorded in the other noninterest income and are not subject to income tax for as long as they are held for the life of the covered employee and director. FHLB Stock and Other Equity Securities The Company is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Company also owns equity investment in banker’s bank stock. The Company adopted ASU 2016-01 on January 1, 2019, and elected the measurement alternative for measuring equity securities without readily determinable fair values at cost less impairment, plus or minus observable price changes in orderly transactions. As of December 31, 2019, the carrying amount of equity securities without readily determinable fair values were $324,000 for PCBB and $100,000 for ACBB. An estimated gain of $107,000 from PCBB and $40,000 from ACBB based on observable activity in these securities was recorded in the first quarter of 2019. As of December 31, 2019 the Company had several CRA equity investments without readily determinable fair values in the amount of $11.8 million, and $10.0 million at December 31, 2018. Stock-Based Compensation Stock option compensation expense is calculated based on the fair value of the award at the grant date for those options expected to vest and is recognized as an expense over the vesting period of the grant using the straight-line method. The Company uses the Black-Scholes option pricing model to estimate the value of granted options. This model takes into account the option exercise price, the expected life, the current price of the underlying stock, the expected volatility of the Company’s stock, expected dividends on the stock and a risk-free interest rate. The Company estimates the expected volatility based on the Company’s historical stock prices for the period corresponding to the expected life of the stock options. Restricted stock units are valued at the closing price of the Company’s stock on the date of the grant. Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards. This cost is recognized over the period which an employee is required to provide services in exchange for the award, generally defined as the vesting period. When the options are exercised, the Company’s policy is to issue new shares of stock. The Company’s accounting policy is to recognize forfeitures as they occur. Income Taxes The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. Tax effects from an uncertain tax position are recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense. Retirement Plans The Company established a 401(k) plan in 2010. The Company contributed $570,000, $341,000, and $272,000 in 2019, 2018 and 2017, respectively. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale. Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit as described in Note 13. Such financial instruments are recorded in the financial statements when they are funded. Earnings Per Share ("EPS") Basic and diluted EPS are calculated using the two-class method since the Company has issued share-based payment awards considered participating securities because they entitle holders the rights to dividends during the vesting term. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Fair Value Measurement F air value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Current accounting guidance establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect the Company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. See Note 17 and Note 18 for more information and disclosures relating to the Company's fair value measurements. Operating Segments Management has determined that since generally all of the banking products and services offered by the Company are available in each branch of the Bank, all branches are located within the same economic environment and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate the Bank branches and report them as a single operating segment. Recent Accounting Pronouncements When RBB conducted its IPO in 2017, we qualified as an emerging growth company (“EGC”). We will remain an EGC until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.0 billion or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of our IPO, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the date on which we are deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended. We anticipate no longer qualifying as an EGC on January 1, 2023. EGCs are entitled to reduced regulatory and reporting requirements under the Securities Act and the Exchange Act. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU" or “Update”) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instrument (Topic 326) In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In November 2019, the FASB issued ASU 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), Codification Improvements—Share-Based Consideration Payable to a Customer In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), Effective Dates |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 3 – ACQUISITIONS First American International Corp. Acquisition: On October 15, 2018, the Company acquired all the assets and assumed all the liabilities of First American International Corp. in exchange for cash of $34.8 million and 3,011,762 shares of RBB common stocks, which was valued at $69.6 million in the aggregate on the date of acquisition. The following table represents the assets acquired and liabilities assumed of FAIC FAIC Fair Value Fair (dollars in thousands) Book Value Adjustments Value Assets acquired Cash and cash equivalents $ 55,891 $ — $ 55,891 Fed funds sold 218 — 218 Interest-bearing deposits in other financial Institutions 3,801 — 3,801 Investments - held to maturity 30,814 (611 ) 30,203 Investments - available for sale 14,388 — 14,388 Mortgage loans held for sale 1,915 — 1,915 Loans, gross 721,732 (6,161 ) 715,571 Allowance for loan losses (9,583 ) 9,583 — Bank premises and equipment 5,785 3,439 9,224 Mortgage servicing rights 11,274 (660 ) 10,614 Core deposit premium — 6,738 6,738 Other assets 3,518 (2,119 ) 1,399 Total assets acquired $ 839,753 $ 10,209 $ 849,962 Liabilities assumed Deposits $ 629,609 $ 94 $ 629,703 FHLB advances 124,500 — 124,500 Subordinated debentures 7,217 (1,241 ) 5,976 Other liabilities 14,940 (1,153 ) 13,787 Total liabilities assumed 776,266 (2,300 ) 773,966 Excess of assets acquired over liabilities assumed 63,487 12,509 75,996 $ 839,753 $ 10,209 Stock consideration 69,602 Cash paid 34,837 Goodwill recognized $ 28,443 PGB Holdings Inc. and Pacific Global Bank Acquisition: On January 10, 2020, we acquired PGB Holdings Inc. and its wholly-owned subsidiary, Pacific Global Bank (“PGB”), in an all-cash transaction for $32.9 million. At the time of acquisition, PGB had approximately $217.6 million in total assets, $192.3 million in total deposits, and three branches in Chicago, Illinois. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | NOTE 4 - INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of available for sale (“AFS”) securities and held to maturity (“HTM”) securities at December 31, 2019 and 2018, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available for sale Government agency securities $ 1,591 $ — $ (19 ) $ 1,572 SBA agency securities 4,671 42 (22 ) 4,691 Mortgage-backed securities- Government sponsored agencies 19,126 74 (29 ) 19,171 Collateralized mortgage obligations 11,641 38 (25 ) 11,654 Corporate debt securities 88,700 281 — 88,981 Total $ 125,729 $ 435 $ (95 ) $ 126,069 Held to maturity Municipal taxable securities $ 3,505 $ 147 $ — $ 3,652 Municipal securities 4,827 153 — 4,980 Total $ 8,332 $ 300 $ — $ 8,632 December 31, 2018 Available for sale Government agency securities $ 1,873 $ — $ (58 ) $ 1,815 SBA agency securities 5,354 — (185 ) 5,169 Mortgage-backed securities- Government sponsored agencies 23,125 — (584 ) 22,541 Collateralized mortgage obligations 12,696 1 (631 ) 12,066 Corporate debt securities 32,615 105 (549 ) 32,171 Total $ 75,663 $ 106 $ (2,007 ) $ 73,762 Held to maturity Municipal taxable securities $ 4,290 $ 142 $ — $ 4,432 Municipal securities 5,671 1 (164 ) 5,508 Total $ 9,961 $ 143 $ (164 ) $ 9,940 During 2019 and 2018 the Company sold $6.1 million and $44.6 million of securities, recognizing gross gains of $7,000 and $5,000, respectively. The Company did not sell any securities in 2017. One security with a fair value of $627,000 and $697,000 was pledged to secure a local agency deposit at December 31, 2019 and December 31, 2018, respectively. The amortized cost and fair value of the investment securities portfolio as of December 31, 2019 are shown by expected maturity below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Less than One Year More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Estimated Amortized Estimated Amortized Estimated Amortized Estimated Amortized Estimated (dollars in thousands) Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value December 31, 2019 Government agency securities $ — $ — $ 1,591 $ 1,572 $ — $ — $ — $ — $ 1,591 $ 1,572 SBA securities — — 714 725 3,957 3,966 — — 4,671 4,691 Mortgage-backed securities- Government sponsored agencies 3,663 3,679 13,027 13,059 2,436 2,433 — — 19,126 19,171 Collateralized mortgage obligations — — 9,288 9,265 2,353 2,389 — — 11,641 11,654 Corporate debt securities 70,914 70,919 2,002 2,008 11,772 12,024 4,012 4,030 88,700 88,981 Total available for sale $ 74,577 $ 74,598 $ 26,622 $ 26,629 $ 20,518 $ 20,812 $ 4,012 $ 4,030 $ 125,729 $ 126,069 Municipal taxable securities $ 285 $ 289 $ 2,716 $ 2,784 $ 504 $ 579 $ — $ — $ 3,505 $ 3,652 Municipal securities — — 40 40 366 379 4,421 4,561 4,827 4,980 Total held to maturity $ 285 $ 289 $ 2,756 $ 2,824 $ 870 $ 958 $ 4,421 $ 4,561 $ 8,332 $ 8,632 The following table summarizes investment securities with unrealized losses at December 31, 2019 and December 31, 2018, aggregated by major security type and length of time in a continuous unrealized loss position: Less than Twelve Months Twelve Months or More Total (dollars in thousands) Unrealized Losses Estimated Fair Value No. of Issuances Unrealized Losses Estimated Fair Value No. of Issuances Unrealized Losses Estimated Fair Value No. of Issuances December 31, 2019 Government agency securities $ (19 ) $ 1,572 2 $ — $ — — $ (19 ) $ 1,572 2 SBA securities (22 ) 1,469 2 — — — (22 ) 1,469 2 Mortgage-backed securities- Government sponsored agencies (5 ) 2,631 4 (24 ) 3,912 6 (29 ) 6,543 10 Collateralized mortgage obligations (10 ) 5,738 3 (15 ) 953 2 (25 ) 6,691 5 Corporate debt securities — — — — — — — — — Total available for sale $ (56 ) $ 11,410 11 $ (39 ) $ 4,865 8 $ (95 ) $ 16,275 19 December 31, 2018 Government agency securities $ — $ — — $ (58 ) $ 1,815 2 $ (58 ) $ 1,815 2 SBA securities — — — (185 ) 5,169 4 (185 ) 5,169 4 Mortgage-backed securities- Government sponsored agencies (12 ) 1,640 1 (572 ) 20,901 23 (584 ) 22,541 24 Collateralized mortgage obligations — — — (631 ) 12,065 8 (631 ) 12,065 8 Corporate debt securities (61 ) 4,600 4 (488 ) 6,548 4 (549 ) 11,148 8 Total available for sale $ (73 ) $ 6,240 5 $ (1,934 ) $ 46,498 41 $ (2,007 ) $ 52,738 46 Municipal securities $ (104 ) $ 2,468 6 $ (60 ) $ 2,174 4 $ (164 ) $ 4,642 10 Total held to maturity $ (104 ) $ 2,468 6 $ (60 ) $ 2,174 4 $ (164 ) $ 4,642 10 Unrealized losses have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell, it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the bonds approach maturity. Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | NOTE 5 - LOANS The Company's loan portfolio consists primarily of loans to borrowers within the Los Angeles, California metropolitan area, the New York City metropolitan area, and Las Vegas, Nevada. Although the Company seeks to avoid concentrations of loans to a single industry or based upon a single class of collateral, real estate and real estate associated businesses are among the principal industries in the Company's market area and, as a result, the Company's loan and collateral portfolios are, to some degree, concentrated in those industries. A summary of the changes in the allowance for loan losses as of December 31 follows: (dollars in thousands) 2019 2018 2017 Allowance for loan losses: Beginning balance $ 17,577 $ 13,773 $ 14,162 Additions (reductions) to the allowance charged to expense 2,390 4,469 (1,053 ) Recoveries on loans charged-off 108 36 747 Less loans charged-off (1,259 ) (701 ) (83 ) Ending balance $ 18,816 $ 17,577 $ 13,773 The following table presents the recorded investment in loans and impairment method as of December 31, 2019, 2018 and 2017 and the activity in the allowance for loan losses for the years then ended, by portfolio segment: (dollars in thousands) December 31, 2019 Real Estate Commercial Other Unallocated Total Allowance for loan losses: Beginning of year $ 13,437 $ 4,140 $ — $ — $ 17,577 Provisions 1,847 433 9 101 2,390 Charge-offs (166 ) (1,093 ) — — (1,259 ) Recoveries — 108 — — 108 $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 Reserves: Specific $ — $ — $ — $ — $ — General 15,118 3,588 9 101 18,816 $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 Loans evaluated for impairment: Individually $ 3,795 $ 9,423 $ — $ — $ 13,218 Collectively 1,842,747 340,148 821 — 2,183,716 $ 1,846,542 $ 349,571 $ 821 $ — $ 2,196,934 December 31, 2018 Real Estate Commercial Unallocated Total Allowance for loan losses: Beginning of year $ 9,309 $ 4,044 $ 420 $ 13,773 Provisions 4,128 761 (420 ) 4,469 Charge-offs — (701 ) — (701 ) Recoveries — 36 — 36 $ 13,437 $ 4,140 $ — $ 17,577 Reserves: Specific $ — $ 44 $ — $ 44 General 13,393 4,140 — 17,533 Loans acquired with deteriorated credit quality — — — — $ 13,437 $ 4,140 $ — $ 17,577 Loans evaluated for impairment: Individually $ 2,309 $ 972 $ — $ 3,281 Collectively 1,750,896 387,838 — 2,138,734 Loans acquired with deteriorated credit quality — — — — $ 1,753,205 $ 388,810 $ — $ 2,142,015 December 31, 2017 Real Estate Commercial Unallocated Total Allowance for loan losses: Beginning of year $ 8,111 $ 6,051 $ — $ 14,162 Provisions 1,198 (2,671 ) 420 (1,053 ) Charge-offs — (83 ) — (83 ) Recoveries — 747 — 747 $ 9,309 $ 4,044 $ 420 $ 13,773 Reserves: Specific $ — $ — $ — $ — General 9,309 4,044 420 13,773 Loans acquired with deteriorated credit quality — — — — $ 9,309 $ 4,044 $ 420 $ 13,773 Loans evaluated for impairment: Individually $ 2,420 $ 155 $ — $ 2,575 Collectively 834,152 412,032 — 1,246,184 Loans acquired with deteriorated credit quality 315 — — 315 $ 836,887 $ 412,187 $ — $ 1,249,074 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass - Loans classified as pass include loans not meeting the risk ratings defined below. Special Mention - Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Impaired - A loan is considered impaired, when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Additionally, all loans classified as troubled debt restructurings are considered impaired. The risk category of loans by class of loans was as follows as of December 31, 2019 and 2018: (dollars in thousands) Special December 31, 2019 Pass Mention Substandard Impaired Total Real estate: Construction and land development $ 95,756 $ — $ — $ 264 $ 96,020 Commercial real estate 767,603 5,353 18,115 2,197 793,268 Single-family residential mortgages 955,327 — 593 1,334 957,254 Commercial: Commercial and industrial 265,178 4,078 5,330 — 274,586 SBA 61,496 189 3,877 9,423 74,985 Other: 821 — — — 821 $ 2,146,181 $ 9,620 $ 27,915 $ 13,218 $ 2,196,934 December 31, 2018 Real estate: Construction and land development $ 112,959 $ — $ — $ 276 $ 113,235 Commercial real estate 743,123 7,069 6,496 2,033 758,721 Single-family residential mortgages 880,860 — 389 — 881,249 Commercial: Commercial and industrial 295,226 6,286 2,798 — 304,310 SBA 79,057 — 4,471 972 84,500 $ 2,111,225 $ 13,355 $ 14,154 $ 3,281 $ 2,142,015 The following table presents the aging of the recorded investment in past-due loans as of December 31, 2019 and 2018 by class of loans: (dollars in thousands) 30-59 60-89 90 Days Total Loans Not Non- Accrual December 31, 2019 Days Days Or More Past Due Past Due Total Loans Loans (1) Real estate: Construction and land development $ — $ — $ — $ — $ 96,020 $ 96,020 $ — Commercial real estate — — 725 725 792,543 793,268 725 Single-family residential mortgages 1,454 1,560 450 3,464 953,790 957,254 1,334 Commercial: Commercial and industrial — — — — 274,586 274,586 — SBA 2,263 — 9,378 11,641 63,344 74,985 9,378 Other: — — — — 821 821 — $ 3,717 $ 1,560 $ 10,553 $ 15,830 $ 2,181,104 $ 2,196,934 $ 11,437 Real estate: Single-family residential mortgages held for sale $ — $ — $ — $ — $ 108,194 $ 108,194 $ — December 31, 2018 Real estate: Construction and land development $ — $ — $ — $ — $ 113,235 $ 113,235 $ — Commercial real estate — 678 — 678 758,043 758,721 — Single-family residential mortgages 1,548 950 — 2,498 878,751 881,249 — Commercial: Commercial and industrial — — — — 304,310 304,310 — SBA 957 — 914 1,871 82,629 84,500 914 $ 2,505 $ 1,628 $ 914 $ 5,047 $ 2,136,968 $ 2,142,015 $ 914 Real estate: Single-family residential mortgages held for sale $ — $ 458 $ — $ 458 $ 434,064 $ 434,522 $ — (1) Included in total loans Information relating to individually impaired loans presented by class of loans was as follows as of December 31, 2019, 2018 and 2017: Unpaid (dollars in thousands) Principal Recorded Average Interest Related December 31, 2019 Balance Investment Balance Income Allowance With no related allowance recorded Construction and land development $ 264 $ 264 $ 271 $ 24 $ — Commercial real estate 2,198 2,197 2,384 100 — Residential mortgage loans 1,349 1,334 1,351 — — Commercial - SBA 9,423 9,423 10,791 4 — With related allowance recorded Commercial-SBA — — — — — Total $ 13,234 $ 13,218 $ 14,797 $ 128 $ — December 31, 2018 With no related allowance recorded Construction and land development $ 276 $ 276 $ 283 $ 23 $ — Commercial real estate 2,033 2,033 2,126 134 — Commercial - SBA 797 1,498 1,377 19 — With related allowance recorded Commercial-SBA 175 175 193 1 44 Total $ 3,281 $ 3,982 $ 3,979 $ 177 $ 44 December 31, 2017 With no related allowance recorded Construction and land development $ 289 $ 289 $ 296 $ 16 $ — Commercial real estate 2,131 2,131 2,192 297 — Commercial - SBA 155 155 78 15 — Total $ 2,575 $ 2,575 $ 2,566 $ 328 $ — No interest income was recognized on a cash basis as of December 31, 2019, 2018 and 2017. We did not recognize any interest income on nonaccrual loans during the years ended December 31, 2019 and December 31, 2018 while the loans were in nonaccrual status. We recognized interest income on loans modified under troubled debt restructurings ("TDR's") of $128,000 and $177,000 during the years ended December 31, 2019 and December 31, 2018, respectively. The Company had four loans identified as troubled debt restructurings at December 31, 2019 and 2018, respectively. There were no specific reserves allocated to the loans as of December 31, 2019 and 2018. There were no commitments to lend additional amounts as of December 31, 2019 and 2018, respectively, to customers with outstanding loans that are classified as TDR's. During the year ended December 31, 2019, the terms of certain loans were modified as TDR's. The modification of the terms generally included loans where a moratorium on loan payments was granted. Such moratoriums ranged from three months to six months on the loans restructured in 2019. The following table presents loans by class modified as TDR's that occurred during the year ended December 31, 2019: Pre- Post- Modification Modification (dollars in thousands) Number of Recorded Recorded December 31, 2019 Loans Investment Investment Commercial real estate 1 $ 476 $ 476 There were no defaults of TDR’s in 2019 and 2018 where the loan was modified within the prior twelve months. In the past the Company has purchased loans as part of its whole bank acquisitions, for which there was at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The purchased credit-impaired loan fully paid off in September 2018. There were no balances as of December 31, 2019 and 2018. Below is a summary of activity in the accretable yield on purchased credit-impaired loans for 2019, 2018 and 2017: (dollars in thousands) 2019 2018 2017 Beginning balance $ — $ 7 $ 142 Disposals — — — Restructuring as TDR — — — Accretion of income — (7 ) (135 ) Ending balance $ — $ — $ 7 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2019 | |
Loan Servicing [Abstract] | |
Loan Servicing | NOTE 6 - LOAN SERVICING Mortgage and SBA loans serviced for others are not reported as assets. The principal balances as of December 31, 2019 and 2018 are as follows: (dollars in thousands) 2019 2018 Loans serviced for others: Mortgage loans $ 1,683,298 $ 1,586,499 SBA loans 170,849 184,664 Commercial real estate loans 4,216 2,838 Activity for servicing assets follows: 2019 2018 2017 Mortgage SBA Mortgage SBA Mortgage SBA (dollars in thousands) Loans Loans Loans Loans Loans Loans Servicing assets: Beginning of period $ 12,858 $ 4,512 $ 1,540 $ 4,417 $ 1,002 $ 2,702 Acquisitions — — 10,651 — — — Additions 2,088 980 1,562 1,932 1,115 2,628 Disposals (128 ) (708 ) (197 ) (1,177 ) (172 ) (367 ) Amortized to expense (1,821 ) (698 ) (698 ) (660 ) (405 ) (546 ) End of period $ 12,997 $ 4,086 $ 12,858 $ 4,512 $ 1,540 $ 4,417 The fair value of servicing assets for mortgage loans was $15.1 million and $15.3 million as of December 31, 2019 and 2018, respectively. Fair value at December 31, 2019 was determined using a discount rate of 10.82%, prepayment speeds ranging from 7.27% to 20.15%, depending on the stratification of the specific right, and a weighted-average default rate of 0.11%. Fair value at December 31, 2018 was determined using a discount rate of 10.59%, prepayment speeds ranging from 8.26% to 16.82%, depending on the stratification of the specific right, and a weighted-average default rate of 0.20%. The fair value of servicing assets for SBA loans was $5.6 million and $6.1 million as of December 31, 2019 and 2018, respectively. Fair value at December 31, 2019 was determined using a discount rate of 8.50%, prepayment speeds ranging from 12.50% to 14.66%, depending on the stratification of the specific right, and a weighted-average default rate of 0.43%. Fair value at December 31, 2018 was determined using a discount rate of 8.50% and prepayment speeds ranging from 11.43% to 12.11%, depending on the stratification of the specific right and a weighted-average default rate of 0.52%. Servicing fees net of servicing asset amortization totaled $3.4 million, $850,000, and $722,000 for the years ended December 31, 2019, 2018, and 2017, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 7 - PREMISES AND EQUIPMENT A summary of premises and equipment as of December 31 follows: (dollars in thousands) 2019 2018 Land $ 5,020 $ 5,020 Building and improvements 7,822 7,823 Furniture, fixtures, and equipment 6,252 4,833 Leasehold improvements 5,590 4,845 24,684 22,521 Less accumulated depreciation and amortization (8,102 ) (6,312 ) Construction in progress 231 1,098 $ 16,813 $ 17,307 Depreciation and leasehold amortization expense was $1.8 million, $989,000, and $686,000 for 2019, 2018, and 2017, respectively. The Company leases several of its operating facilities under various noncancellable operating leases expiring at various dates through 2028. The Company is also responsible for common area maintenance, taxes and insurance at the various branch locations. Future minimum rent payments on the Company's leases were as follows as of December 31, 2019: (dollars in thousands) Year ending December 31: 2020 $ 5,603 2021 4,634 2022 4,192 2023 3,250 2024 2,209 Thereafter 8,998 $ 28,886 The minimum rent payments shown above are given for the existing lease obligations and are not a forecast of future rental expense. Total rental expense, recognized on a straight-line basis, was $6.1 million, $2.7 million, and $1.5 million for 2019, 2018, and 2017, respectively. The lease for the Company’s downtown headquarters expired in May 2018. In October 2018 the Company signed a lease for a new headquarters office at 1055 Wilshire Boulevard, Suite 1220, Los Angeles, California 90017, which the Company occupied in November 2018. In February 2018 the Company signed a lease for a new office in Irvine, California which the Company occupied in October 2018. In September 2017 the Company signed a lease to occupy a new location in Oxnard, California which the Company occupied in March 2018. In October 2018 the Company signed a lease to occupy a new location in Flushing, New York which the Company occupied in February 2019. In January 2020, the Company signed a lease to for a new branch in Edison, New Jersey, which the Company expects to occupy in June 2020. In March 2020, the Company signed a new lease to its Diamond Bar, California branch to a new location. The future payments for all of the new leases are included in the schedule above. The Company recorded $197,000 in sub-lease income in 2019. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Maturities Of Time Deposits [Abstract] | |
Deposits | NOTE 8 - DEPOSITS At December 31, 2019 the scheduled maturities of time deposits are as follows: (dollars in thousands) One year $ 1,215,913 Two to three years 34,863 Over three years 1,909 Total $ 1,252,685 Brokered time deposits were $67.1 million at December 31, 2019 and $113.8 million at December 31, 2018. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | NOTE 9 - LONG-TERM DEBT At December 31, 2019 and 2018, respectively, long-term debt was as follows: (dollars in thousands) 2019 2018 Principal $ 105,000 $ 105,000 Unamortized debt issuance costs $ 951 $ 1,292 In March 2016, the Company issued $50 million of 6.5% fixed to floating rate subordinated debentures, due March 31, 2026. The interest rate is fixed through March 31, 2021 and floats at 3 month LIBOR plus 516 basis points thereafter. The Company can redeem these subordinated debentures beginning March 31, 2021. The sub-debt is considered Tier-two capital at the Company. The Company allocated $35 million to the Bank as Tier-one capital. In November 2018, the Company issued $55 million of 6.18% fixed to floating rate subordinated debentures, due December 1, 2028. The interest rate is fixed through December 1, 2023 and floats at 3 month LIBOR plus 315 basis points thereafter. The Company can redeem these subordinated debentures beginning December 1, 2023. The sub-debt is considered Tier-two capital at the Company. The Company allocated $25 million to the Bank as Tier-one capital. The following table presents interest and amortization expense the Company incurred for the year ended December 31, 2019 and 2018: For the Year Ended December 31, (dollars in thousands) 2019 2018 Interest Expense: Interest $ 6,649 $ 3,552 Amortization 342 162 |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instruments [Abstract] | |
Subordinated Debentures | NOTE 10 - SUBORDINATED DEBENTURES The Company, through the acquisition of TFC Bancorp in 2016, acquired TFC Statutory Trust (the “Trust”). The Trust contained a pooled private offering of 5,000 trust preferred securities with a liquidation amount of $1,000 per security. TFC Bancorp issued $5 million of subordinated debentures to the Trust in exchange for ownership of all of the common security of the Trust and the proceeds of the preferred securities sold by the trust. The Company is not considered the primary beneficiary of this trust (variable interest entity), therefore the Trust is not consolidated in the Company's financial statements, but rather the subordinated debentures are shown as a liability at market value as of the close of the acquisition which was $3.3 million. There was a $1.9 million valuation reserve recorded to arrive at market value, which is treated as a yield adjustment and is amortized over the life of the security. The Company also purchased an investment in the common stock of the trust for $155,000, which is included in other assets. The Company may redeem the subordinated debentures, subject to prior approval by the Board of Governors of the Federal Reserve System on or after March 15, 2012, at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on March 15, 2037. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years. The Company has been paying interest on a quarterly basis. The subordinated debentures may be included in Tier I capital (with certain limitations applicable) under current regulatory guidelines and interpretations. The subordinated debentures have a variable rate of interest equal to the three month London Interbank Offered Rate (LIBOR) plus 1.65%, which was 3.54% as of December 31, 2019 and 4.66% at December 31, 2018. In October 2018, the Company, through the acquisition of First American International Corp., acquired First American International Statutory Trust I (“FAIC Trust”), a Delaware statutory trust formed in December 2004. The Trust issued 7,000 units of thirty-year fixed to floating rate capital securities with an aggregate liquidation amount of $7 million to an independent investor, and FAIC issued $7 million of subordinated debentures to the FAIC Trust and all of its common securities, amounting to $217,000, which is included in other assets. There was a $1.2 million valuation reserve recorded to arrive at market value which is treated as a yield adjustment and is amortized over the life of the security. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years. The subordinated debenture have a variable rate of interest equal to the three-month LIBOR plus 2.25% through final maturity on December 15, 2034. The rate at December 31, 2019, was 4.14% and 5.04% at December 31, 2018. The Company paid interest expenses of $540,000 in 2019, $263,000 in 2018 and $144,000 in 2017. The amount of aggregate amortization expense recognized in 2019 was $167,000, in 2018 was $106,000 and $90,000 in 2017. For regulatory reporting purposes, the Federal Reserve Board has indicated that the capital securities qualify as Tier I capital of the Company subject to previously specified limitations, until further notice. If regulators make a determination that the capital securities can no longer be considered in regulatory capital, the securities become callable and the Company may redeem them. In July 2017, British banking regulators announced plans to eliminate the LIBOR rate by the end of 2021, before these subordinated notes and debentures mature. For these subordinated notes and debentures, there are provisions for amendments to establish a new interest rate benchmark. |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | NOTE 11 - BORROWING ARRANGEMENTS The Company has established secured and unsecured lines of credit. The Company may borrow funds from time to time on a term or overnight basis from the Federal Home Loan Bank of San Francisco ("FHLB"), the Federal Reserve Bank of San Francisco ("FRB") and other financial institutions as indicated below. Federal Funds Arrangements with Commercial Bank s. As of December 31, 2019 the Company may borrow on an unsecured basis, up to $20.0 million, $10.0 million, $12.0 million and $5.0 million overnight from Zions Bank, Wells Fargo Bank, First Tennessee National Bank, and Pacific Coast Bankers' Bank, respectively. Letter of Credit Arrangements. As of December 31, 2019 the Company had an unsecured commercial letter of credit line with Wells Fargo Bank for $2.0 million. FRB Secured Line of Credit. The secured borrowing capacity with the FRB of $14.3 million at December 31, 2019 is collateralized by loans pledged with a carrying value of $28.7 million. FHLB Secured Line of Credit. The secured borrowing capacity with the FHLB of $636.5 million at December 31, 2019 is collateralized by loans pledged with a carrying value of $727.8 million. At December 31, 2019, the Company had no |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 - INCOME TAXES The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Income tax expense consists of the following: (dollars in thousands) 2019 2018 2017 Current: Federal $ 8,074 $ 6,616 $ 12,097 State 5,614 3,451 3,773 13,688 10,067 15,870 Deferred 1,503 (131 ) 2,492 Deferred tax adjustment for change in tax rate 21 (479 ) 2,591 Amortization of investment in affordable housing tax credits 900 644 316 $ 16,112 $ 10,101 $ 21,269 A comparison of the federal statutory income tax rates to the Company's effective income tax rates as of December 31 follows: 2019 2018 2017 (dollars in thousands) Amount Rate Amount Rate Amount Rate Statutory federal tax $ 11,617 21.0 % $ 9,703 21.0% $ 16,379 35.0 % State franchise tax, net of federal benefit 5,322 9.6 % 3,488 7.5% 3,135 6.7 % Tax-exempt income (25 ) 0.0 % (27 ) -0.1% (297 ) -0.6 % Tax impact from change in tax rate 17 0.0 % (479 ) -1.0% 2,591 5.5 % Stock-based compensation (27 ) 0.0 % (2,643 ) -5.7% — 0.0 % Other items, net (792 ) -1.4 % 59 0.1% (539 ) -1.2 % Actual tax expense $ 16,112 29.2 % $ 10,101 21.8 % $ 21,269 45.4 % Deferred taxes are a result of differences between income tax accounting and generally accepted accounting principles with respect to income and expense recognition. The following is a summary of the components of the net deferred tax asset accounts recognized in the accompanying balance sheets as of December 31: (dollars in thousands) 2019 2018 Deferred tax assets: Pre-opening expenses $ 122 $ 154 Allowance for loan losses 5,883 5,545 Stock-based compensation 1,346 1,419 Off balance sheet reserve 258 217 Operating loss carryforwards 1,253 1,688 Other real estate owned 37 10 Unrealized loss on AFS securities — 600 Mark to market on held for sale mortgage loans 359 2,451 Other 1,594 1,220 10,852 13,304 Deferred tax liabilities: Depreciation (282 ) (521 ) Unrealized gain on AFS securities (106 ) — Acquisition accounting fair value adjustments (2,671 ) (2,067 ) Mortgage servicing rights (3,745 ) (3,586 ) Other (1,722 ) (2,488 ) (8,526 ) (8,662 ) Net deferred tax assets $ 2,326 $ 4,642 At December 31, 2019, the Company has net operating loss carryforwards from acquisitions of approximately $32,000 for federal, zero for California, $9.6 million for New York State and $8.8 million for New York City income tax purposes. Net operating loss carry forwards, to the extent not used will begin to expire in 2028. Net operating loss carryforwards available from acquisitions are substantially limited by Section 382 of the Internal Revenue Code and benefits not expected to be realized due to the limitation have been excluded from the deferred tax asset and net operating loss carryforward amounts noted above. The Company acquired operating loss carryforwards in its acquisitions that were subject to limitations under Section 382 of the Internal Revenue Code. The amount of net operating loss carry forwards subject to the 382 limitations amounts to $3.8 million, $11.4 million, $12.3 million and $9.3 million for federal, California, New York State and New York City income tax purposes, respectively. The Company is subject to federal income tax and franchise tax of the state of California and New York. Income tax returns for the years ended after December 31, 2015 are open to audit by the federal and New York authorities and for the years ended after December 31, 2014 are open to audit by California state authorities. There were no recorded interest or penalties related to uncertain tax positions as part of income tax for the years ended December 31, 2019, 2018, and 2017, respectively. The Company has determined that as of December 31, 2019 all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the consolidated financial statements. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | NOTE 13 - COMMITMENTS In the ordinary course of business, the Company enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit, unused lines of credit, commercial and similar letters of credit and standby letters of credit. Those instruments involve to varying degrees, elements of credit and interest rate risk not recognized in the Company's financial statements. The Company's exposure to loan loss in the event of nonperformance on these financial commitments is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for loans reflected in the financial statements. As of December 31, 2019 and 2018, the Company had the following financial commitments whose contractual amount represents credit risk: 2019 2018 Fixed Variable Fixed Variable (dollars in thousands) Rate Rate Rate Rate Commitments to make loans $ — $ 167,496 $ 5,211 $ 125,610 Unused lines of credit 55,789 102,841 61,191 75,908 Commercial and similar letters of credit — 358 1,042 — Standby letters of credit 2,485 1,230 2,701 673 $ 58,274 $ 271,925 $ 70,145 $ 202,191 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. The Company evaluates each client's credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company is based on management's credit evaluation of the customer. The Company is involved in various matters of litigation which have arisen in the ordinary course of business and accruals for estimates of potential losses have been provided when necessary and appropriate under generally accepted accounting principles. In the opinion of management, the disposition of such pending litigation will not have a material effect on the Company's financial statements. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14 - RELATED PARTY TRANSACTIONS Loans to principal officers, directors, and their affiliates were as follows: (dollars in thousands) 2019 2018 Beginning balance $ 3,600 $ 2,300 New loans and advances 16,180 7,400 Repayments (15,780 ) $ (6,100 ) Ending balance $ 4,000 $ 3,600 There were no loan commitments outstanding to executive officers, directors and their related interests with whom they are associated as of December 31, 2019 and $800,000 as of December 31, 2018. Deposits from principal officers, directors, and their affiliates at year-end 2019 and 2018 were $84.6 million and $52.1 million. |
Stock Option Plan
Stock Option Plan | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Plan | NOTE 15- STOCK OPTION PLAN Under the terms of the Company's 2017 Omnibus Stock Incentive Plan, officers and key employees may be granted both nonqualified and incentive stock options and directors and organizers, who are not also an officer or employee, may only be granted nonqualified stock options. The Plan provides for options to purchase up to 30 percent of the outstanding common stock at a price not less than 100 percent of the fair market value of the stock on the date of the grant. Stock options expire no later than ten years from the date of the grant and generally vest over three years. At December 31, 2019, 1,254,045 shares were available under the 2017 Omnibus Stock Incentive Plan for future grants. The Company recognized stock-based compensation expense of $689,000, $684,000, and $779,000 in 2019, 2018, and 2017 and recognized income tax benefits on that expense of $161,000, $202,000, and $246,000, respectively. The Company did not grant restricted stock awards in 2019. The Company granted restricted stock awards for 43,425 shares at a closing price of $29.38 in 2018. There were no restricted stock grants in prior years. These restricted stock units are scheduled to vest over a three year period from the August 15, 2018 grant date. During the year ended 2019, 14,475 restricted stock units vested. As of December 31, 2019, there were 28,950 remaining unvested restricted stock units. As of December 31, 2019 there was $691,000 of total unamortized restricted stock compensation and weighted average grant price was $29.38. The intrinsic value of vested restricted was $262,000 as of December 31, 2019. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions presented below for 2019 and 2016. There were no stock options granted in 2018 and 2017. 2019 2016 Expected volatility 35.0 % 35.0 % Expected term 6.0 years 6.0 years Expected dividends 1.90 % None Risk free rate 2.66 % 1.93 % Grant date fair value $ 6.32 $ 6.76 Since the Company had a limited amount of historical stock activity, the expected volatility was based on the historical volatility of similar banks that had a longer trading history. The expected term represents the estimated average period of time that the options remain outstanding. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding. The risk free rate of return reflects the grant date interest rate offered for zero coupon U.S. Treasury bonds over the expected term of the options. A summary of the status of the Company's stock option plan as of December 31, 2019 and changes during the year then ended is presented below: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic (dollars in thousands, except for share amounts) Shares Price Term Value Outstanding at beginning of year 1,215,097 $ 12.83 Granted 76,500 18.38 Exercised (200,629 ) 13.43 Outstanding at end of year 1,090,968 $ 13.11 4.07 years $ 8,790 Options exercisable 1,014,468 $ 12.72 3.69 years $ 8,577 As of December 31, 2019 there was approximately $332,000 of total unrecognized compensation cost related to outstanding stock options that will be recognized over a weighted-average period of 2 years. The intrinsic value of options exercised was $1.2 million, $13.6 million, and $2.8 million in 2019, 2018, and 2017, respectively. The total fair value of the shares vested was $460,000, $734,000, and $930,000 in 2019, 2018, and 2017, respectively. The number of unvested stock options were 76,500, 62,008 and 163,996 with a weighted average grant date fair value of $6.32, $6.48 and $6.53 as of December 31, 2019, 2018 and 2017. Cash received from the exercise of 200,629 share options was $2.8 million for the period ended December 31, 2019. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Regulatory Matters | NOTE 16 - REGULATORY MATTERS Holding companies (with assets over $3 billion at the beginning of the year) and banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. In July, 2013, the federal bank regulatory agencies approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks. The new rules became effective on January 1, 2015, with certain of the requirements phased-in over a multi-year schedule. Under the rules, minimum requirements increased for both the quantity and quality of capital held by the Bank. The rules include a new common equity Tier 1 ("CET1") capital to risk-weighted assets ratio with minimums for capital adequacy and prompt corrective action purposes of 4.5% and 6.5%, respectively. The minimum Tier 1 capital to risk-weighted assets ratio was raised from 4.0% to 6.0% under the capital adequacy framework and from 6.0% to 8.0% to be well-capitalized under the prompt corrective action framework. In addition, the rules introduced the concept of a "conservation buffer" of 2.5% applicable to the three capital adequacy risk-weighted asset ratios (CET1, Tier 1, and Total). The implementation of the capital conservation buffer began on January 1, 2016 at 0.625% and will be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). If the capital adequacy minimum ratios plus the phased-in conservation buffer amount exceed actual risk-weighted capital ratios, then dividends, share buybacks, and discretionary bonuses to executives could be limited in amount. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and CET1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). As permitted by the regulators for financial institutions that are not deemed to be “advanced approaches” institutions, the Company has elected to opt out of the Basel III requirement to include accumulated other comprehensive income in risk-based capital. Management believes, at December 31, 2019 and December 31, 2018, that the Bank satisfied all capital adequacy requirements to which it is subject. The capital conservation buffer is being phased in for 0.0% for 2015 to 2.50% by 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes, as of December 31, 2019 and 2018, that the Bank meets all capital adequacy requirements to which it is subject. As of December 31, 2019 and 2018, the most recent notification from the FDIC categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action (there are no conditions or events since that notification that management believes have changed the Bank's category). To be categorized as well-capitalized, the Bank must maintain minimum ratios as set forth in the table below. The following table sets forth RBB Bancorp's consolidated and the Bank's actual capital amounts and ratios and related regulatory requirements for the Bank as of December 31, 2019: Amount of Capital Required To Be Well-Capitalized Minimum Required for Under Prompt Corrective Actual Capital Adequacy Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Tier 1 Leverage Ratio Consolidated $ 353,572 12.89 % NA NA NA NA Bank 417,036 15.23 % $ 108,150 4.0 % $ 135,187 5.0 % Common Equity Tier 1 Risk-Based Capital Ratio Consolidated $ 343,899 17.16 % NA NA NA NA Bank 417,036 20.87 % 89,127 4.5 % 128,739 6.5 % Tier 1 Risk-Based Capital Ratio Consolidated $ 353,572 17.65 % NA NA NA NA Bank 417,036 20.87 % 118,836 6.0 % 158,448 8.0 % Total Risk-Based Capital Ratio Consolidated $ 477,262 23.82 % NA NA NA NA Bank 436,677 21.86 % 158,448 8.0 % 198,061 10.0 % The following table sets forth RBB Bancorp's consolidated and the Bank's actual capital amounts and ratios and related regulatory requirements for the Bank as of December 31, 2018: Amount of Capital Required To Be Well-Capitalized Minimum Required for Under Prompt Corrective Actual Capital Adequacy Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018: Tier 1 Leverage Ratio Consolidated $ 321,407 11.80 % NA NA NA NA Bank 370,304 13.66 % $ 108,445 4.0 % $ 135,556 5.0 % Common Equity Tier 1 Risk Based Capital Ratio Consolidated $ 311,901 15.28 % NA NA NA NA Bank 370,304 18.17 % $ 91,722 4.5 % $ 132,487 6.5 % Tier 1 Risk-Based Capital Ratio Consolidated $ 321,407 15.74 % NA NA NA NA Bank 370,304 18.17 % 122,296 6.0 % $ 163,061 8.0 % Total Risk-Based Capital Ratio Consolidated $ 443,379 21.71 % NA NA NA NA Bank 388,569 19.07 % $ 163,061 8.0 % $ 203,826 10.0 % The California Financial Code generally acts to prohibit banks from making a cash distribution to its shareholders in excess of the lesser of the bank's undivided profits or the bank's net income for its last three fiscal years less the amount of any distribution made by the bank's shareholders during the same period. The California general corporation law generally acts to prohibit companies from paying dividends on common stock unless its retained earnings, immediately prior to the dividend payment, equals or exceeds the amount of the dividend. If a company fails this test, then it may still pay dividends if after giving effect to the dividend the company's assets are at least 125% of its liabilities. Additionally, the Federal Reserve Bank has issued guidance which requires that they be consulted before payment of a dividend if a bank holding company does not have earnings over the prior four quarters of at least equal to the dividend to be paid, plus other holding company obligations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 17 - FAIR VALUE MEASUREMENTS The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities: The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1) or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2). Other Real Estate Owned Appraisals for other real estate owned are performed by state licensed appraisers (for commercial properties) or state certified appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. When a Notice of Default is recorded, an appraisal report is ordered. Once received, a member of the credit administration department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison to independent data sources such as recent market data or industry wide-statistics for residential appraisals. Commercial appraisals are sent to an independent third party to review. The Company also compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal values on any remaining other real estate owned to arrive at fair value. If the existing appraisal is older than twelve months a new appraisal report is ordered. No significant adjustments to appraised values have been made as a result of this comparison process as of December 31, 2019. Collateral-dependent impaired loans The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value at December 31, 2019 and 2018: (dollars in thousands) Fair Value Measurements Using: December 31, 2019 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ — $ 1,572 $ — $ 1,572 SBA agency securities — 4,691 — 4,691 Mortgage-backed securities — 19,171 — 19,171 Collateralized mortgage obligations — 11,654 — 11,654 Commercial paper — 69,898 69,898 Corporate debt securities — 19,083 — 19,083 $ — $ 126,069 $ — $ 126,069 On a non-recurring basis: Other real estate owned — — 293 293 $ — $ — $ 293 $ 293 December 31, 2018 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ — $ 1,815 $ — $ 1,815 SBA agency securities — 5,169 — 5,169 Mortgage-backed securities — 22,541 — 22,541 Collateralized mortgage obligations — 12,066 — 12,066 Commercial paper — 14,918 14,918 Corporate debt securities — 17,253 — 17,253 $ — $ 73,762 $ — $ 73,762 On a non-recurring basis: Commercial real estate - collateral dependent impaired loans $ — — $ 123 $ 123 Other real estate owned — — $ 1,101 $ 1,101 $ — $ — $ 1,224 $ 1,224 No write-downs to OREO were recorded in 2019 or 2018. Quantitative information about the Company's non-recurring Level 3 fair value measurements as of December 31, 2019 and 2018 is as follows: Weighted- (dollars in thousands) Fair Value Valuation Unobservable Adjustment Average December 31, 2019 Amount Technique Input Range Adjustment Other real estate owned $ 293 Third Party Management Adjustments 29% 29% Appraisals to Reflect Current Conditions and Selling Costs December 31, 2018 Other real estate owned $ 1,101 Third Party Management Adjustments 16% 16% Appraisals to Reflect Current Conditions and Selling Costs |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 18 - FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on financial instruments both on and off the balance sheet without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The following methods and assumptions were used to estimate the fair value of significant financial instruments not previously presented: Cash and Cash Equivalents The carrying amounts of cash and short-term instruments approximate fair values. Time Deposits in Other Banks Fair values for time deposits with other banks are estimated using discounted cash flow analyses, using interest rates currently being offered with similar terms. Loans For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying amounts. The fair values for all other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of December 31, 2019 was measured using an exit price notion. The fair value of loans as of December 31, 2018 was measured using an exit price notion. Mortgage Loans Held for Sale The Company records mortgage loans held for sale at fair value based on the net premium received on recent sales of mortgage loans for identical pools of loans. Deposits The fair values disclosed for demand deposits, including interest and non-interest demand accounts, savings, and certain types of money market accounts are, by definition based on carrying value. Fair value for fixed-rate certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregate expected monthly maturities on time deposits. Early withdrawal of fixed-rate certificates of deposit is not expected to be significant FHLB Advances The carrying amounts of short-term debt with maturities of less than ninety days, such as FHLB Advances, approximate their fair values. Long-Term Debt The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. Subordinated Debentures The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. Off-Balance Sheet Financial Instruments The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. The fair value of these financial instruments is not material. The fair value hierarchy level and estimated fair value of significant financial instruments at December 31, 2019 and 2018 are summarized as follows: 2019 2018 Fair Value Carrying Fair Carrying Fair (dollars in thousands) Hierarchy Value Value Value Value Financial Assets: Cash and due from banks Level 1 $ 114,763 $ 114,763 $ 147,685 $ 147,685 Federal funds sold and other cash equivalents Level 1 67,000 67,000 — — Interest-earning deposits in other financial institutions Level 1 600 600 600 600 Investment securities - AFS Level 2 126,069 126,069 73,762 73,762 Investment securities - HTM Level 2 8,332 8,632 9,961 9,940 Mortgage loans held for sale Level 1 108,194 109,385 434,522 438,948 Loans, net Level 3 2,178,118 2,158,970 2,124,438 2,114,341 Equity securities Level 3 11,826 11,826 10,039 10,039 Mortgage servicing rights Level 2 17,083 20,752 17,370 21,361 Financial Liabilities: Deposits Level 2 $ 2,248,938 $ 2,236,329 $ 2,144,041 $ 2,143,196 FHLB advances Level 2 — — 319,500 319,500 Long-term debt Level 2 104,049 109,877 103,708 79,756 Subordinated debentures Level 3 9,673 11,709 9,506 10,356 |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | NOTE 19 - EARNINGS PER SHARE ("EPS") The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute EPS: 2019 2018 2017 (dollars in thousands except per share amounts) Income Shares Income Shares Income Shares Net income as reported $ 39,209 $ 36,105 $ 25,528 Less: Earnings allocated to Participating Securities (74 ) — — Shares outstanding 20,030,866 20,000,022 15,908,893 Impact of weighting shares (13,560 ) (2,848,800 ) (1,830,612 ) Used in basic EPS 39,135 20,017,306 36,105 17,151,222 25,528 14,078,281 Dilutive effect of outstanding Stock options 376,118 816,431 1,160,084 Used in dilutive EPS $ 39,135 20,393,424 $ 36,105 17,967,653 $ 25,528 15,238,365 Basic earnings per common share $ 1.96 $ 2.11 $ 1.81 Diluted earnings per common share 1.92 2.01 1.68 Stock options for 76,500 shares and 399,000 shares of common stock were not considered in computing diluted earnings per common share for Dec 31, 2019 and 2018, respectively because they were anti-dilutive. There were no anti-dilutive stock options in December 31, 2017. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue From Contracts With Customers | NOTE 20 – REVENUE FROM CONTRACTS WITH CUSTOMERS On January 1, 2019, the Company adopted ASU 2014-09, Revenue from Contracts with Customers - Topic 606 The following is a summary of revenue from contracts with customers that are in-scope and not in-scope under Topic 606: For the Year Ended December 31, (dollars in thousands) 2019 2018 2017 Non-interest income, in scope (1) Fees and service charges on deposit accounts $ 1,366 $ 1,115 $ 1,164 Other fees (2) 1,118 723 145 Other income (3) 1,429 709 501 (Loss) gain on sale of OREO and fixed assets (100 ) — 142 Total in-scope non-interest income 3,813 2,547 1,952 Non-interest income, not in scope (4) 14,507 10,295 11,249 Total non-interest income $ 18,320 $ 12,842 $ 13,201 (1) There were no adjustments to the Company's financial statements recorded as a result of the adoption of ASC 606. (2) Other fees consists of wealth management fees, miscellaneous loan fees and postage/courier fees. (3) Other income consists of safe deposit box rental income, wire transfer fees, security brokerage fees, annuity sales, insurance activity, and OREO income. (4) The amounts primarily represent revenue from contracts with customers that are out of scope of ASC606: Net loan servicing income, letter of credit commissions, import/export commissions, recoveries on purchased loans, BOLI income, and gains (losses) on sales of mortgage loans, loans and investment securities. The major revenue streams by fee type that are within the scope of ASC 606 presented in the above tables are described in additional detail below: Fees and Services Charges on Deposit Accounts Fees and service charges on deposit accounts include charges for analysis, overdraft, cash checking, ATM, and safe deposit activities executed by our deposit clients, as well as interchange income earned through card payment networks for the acceptance of card based transactions. Fees earned from our deposit clients are governed by contracts that provide for overall custody and access to deposited funds and other related services, and can be terminated at will by either party; this includes fees from money service businesses (MSBs). Fees received from deposit clients for the various deposit activities are recognized as revenue once the performance obligations are met. Periodic service charges are generally collected monthly directly from the customer’s deposit account, and at the end of a statement cycle, while transaction based service charges are typically collected at the time of or soon after the service is performed. The adoption of ASU 2014-09 had no impact to the recognition of fees and service charges on deposit accounts. Wealth Management Fees The Company employs financial consultants to provide investment planning services for customers including wealth management services, asset allocation strategies, portfolio analysis and monitoring, investment strategies, and risk management strategies. The commission fees the Company earns are variable and are generally received monthly. The Company recognizes revenue for the services performed at quarter-end based on actual transaction details received from the broker dealer the Company engages. In the Company’s wealth management division, revenue is primarily generated from (1) securities brokerage accounts, (2) investment advisor accounts, (3) full service brokerage implementation fees, and (4) life insurance and annuity products. Gain on Sales of Other Real Estate Owned and Fixed Assets The Company records a gain or loss from the sale of OREO and fixed assets, when control of the property or asset transfers to the buyer, which generally occurs at the time of an executed deed or sales agreement. When the Company finances the sale of OREO to a buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain or loss on sale if a significant financing component is present. |
Qualified Affordable Housing Pr
Qualified Affordable Housing Project Investments | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Qualified Affordable Housing Project Investments | NOTE 21 – QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS The Company began investing in qualified affordable housing projects in 2016. At December 31, 2019 and December 31, 2018, the balance of the investment for qualified affordable housing projects was $8.6 million and $9.5 million, respectively. This balance is reflected in the accrued interest and other assets line on the consolidated balance sheets. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $4.2 million and $6.8 million at December 31, 2019 and December 31, 2018. The Company expects to fulfill these commitments between 2020 and 2027. During the years ending December 31, 2019, 2018 and 2017, the Company recognized amortization expense of $900,000, $644,000 and $316,000, respectively, which was included within income tax expense on the consolidated statements of income. During the years ended December 31, 2019, 2018 and 2017, the Company recognized tax credits from its investment in affordable housing tax credits of $1.1 million, $573,000 and $275,000, respectively. The Company had no impairment losses during the years ended December 31, 2019, 2018 and 2017 |
Parent Only Condensed Financial
Parent Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Only Condensed Financial Information | NOTE 22 - PARENT ONLY CONDENSED FINANCIAL INFORMATION The parent company only condensed statements of financial condition as of December 31, 2019 and 2018, and the related condensed statements of income and condensed statements of cash flows for the years ended December 31, 2019, 2018, and 2017 are presented below: Condensed Statements of Financial Condition (Dollars in Thousands) 2019 2018 ASSETS Cash and cash equivalents $ 29,985 $ 45,540 Investment in Bank 480,703 433,023 Investment in RAM 6,870 6,796 Other assets 4,202 2,820 Total assets $ 521,760 $ 488,179 LIABILITIES AND SHAREHOLDERS' EQUITY Long term debt 104,049 103,708 Subordinated debentures 9,673 9,506 Other liabilities 348 344 Total liabilities 114,070 113,558 Shareholders' equity: Common stock 290,395 288,610 Additional paid-in capital 4,938 5,659 Retained earnings 112,046 81,618 Non-controlling interest 72 72 Accumulated other comprehensive income (loss) 239 (1,338 ) Total shareholders' equity 407,690 374,621 Total liabilities and shareholders' equity $ 521,760 $ 488,179 Condensed Statements of Income (Dollars in Thousands) 2019 2018 2017 Interest income $ — $ 15 $ — Interest expense 7,697 4,083 3,629 Noninterest expense 1,300 1,255 642 Loss before equity in undistributed income of subsidiaries (8,997 ) (5,323 ) (4,271 ) Equity in undistributed income of: Bank 45,324 39,198 27,620 RAM 74 528 143 Income before income taxes 36,401 34,403 23,492 Income tax benefit 2,808 1,702 2,036 Net income 39,209 36,105 25,528 Other comprehensive income (loss) 1,577 (895 ) (104 ) Total comprehensive income $ 40,786 $ 35,210 $ 25,424 Condensed Statements of Cash Flows (Dollars in Thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 39,209 $ 36,105 $ 25,528 Net amortization of other 508 268 235 Provision for deferred income taxes 513 (1,905 ) 1,807 Undistributed income of subsidiaries (45,398 ) (39,726 ) (27,763 ) Change in other assets and liabilities (1,981 ) 3,492 (3,923 ) (7,149 ) (1,766 ) (4,116 ) Cash flows from investment activities: Net cash acquired (outlay) in connection with acquisition — (41,358 ) — Investment in subsidiaries — (15,000 ) (25,000 ) — (56,358 ) (25,000 ) Cash flows from financing activities: Issuance of subordinated debentures, net of issuance costs — 54,018 — Issuance of common stock, net of issuance costs — — 60,210 Dividends paid (8,033 ) (5,753 ) (5,118 ) Common stock repurchased, net of repurchased costs (3,190 ) Stock options exercised 2,817 9,630 2,296 (8,406 ) 57,895 57,388 Increase in cash and cash equivalents (15,555 ) (229 ) 28,272 Cash and cash equivalents beginning of year 45,540 45,769 17,497 Cash and cash equivalents end of year $ 29,985 $ 45,540 $ 45,769 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 23 – SUBSEQUENT EVENTS On January 10, 2020, we acquired PGB Holdings Inc. and its wholly-owned subsidiary, Pacific Global Bank (“PGB”) in an all-cash transaction for $32.9 million. At the time of acquisition, PGB had approximately $217.6 million in total assets, $192.3 million in total deposits, and three branches in Chicago, Illinois. The fair value accounting process has not been completed for this acquisition. |
Quarterly Income Statements (Un
Quarterly Income Statements (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Income Statements (Unaudited) | NOTE 24 – QUARTERLY INCOME STATEMENTS (Unaudited) The following table presents the unaudited quarterly condensed income statements for the years 2019 and 2018. 2019 2018 (dollars in thousands) 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Interest income $ 33,907 $ 34,669 $ 35,943 $ 37,206 $ 35,181 $ 24,473 $ 22,284 $ 20,177 Interest expense 10,784 11,157 11,626 11,294 9,599 5,857 4,457 3,732 Net interest income 23,123 23,512 24,317 25,912 25,582 18,616 17,827 16,445 Provision for credit losses 659 824 357 550 1,890 1,695 700 184 Net interest income after provision for credit losses 22,464 22,688 23,960 25,362 23,692 16,921 17,127 16,261 Noninterest income: 5,823 2,799 5,496 4,202 5,489 2,105 2,793 2,455 Noninterest expense: 13,463 13,786 14,899 15,325 15,503 8,654 8,191 8,289 Income before income taxes 14,824 11,701 14,557 14,239 13,678 10,372 11,729 10,427 Income tax expense 4,149 3,689 4,415 3,859 4,188 2,041 2,292 1,580 Net income $ 10,675 $ 8,012 $ 10,142 $ 10,380 $ 9,490 $ 8,331 $ 9,437 $ 8,847 Net income per share Basic $ 0.53 $ 0.40 $ 0.51 $ 0.52 $ 0.48 $ 0.50 $ 0.58 $ 0.55 Diluted 0.52 0.39 0.50 0.51 0.47 0.48 0.54 0.52 |
Repurchase of Common Stock
Repurchase of Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Repurchase of Common Stock | NOTE 25 – REPURCHASE OF COMMON STOCK During 2019 the board of directors approved the Company to repurchase up to 1,000,000 million shares of stock. As of December 31, 2019 the Company had repurchased 169,785 shares of stock at an average per share price of $18.79. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-K and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for financial reporting. |
Principles of Consolidation and Nature of Operations | Principles of Consolidation and Nature of Operations The accompanying consolidated financial statements include the accounts of RBB Bancorp and its wholly-owned subsidiaries Royal Business Bank ("Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as "the Company". All significant intercompany transactions have been eliminated. RBB Bancorp was formed in January 2011 as a bank holding company, and in 2018 changed to a financial holding company. RAM was formed in 2012 to hold and manage problem assets acquired in business combinations. In connection with the 2018 acquisition of FAIC, the Company acquired a real estate investment trust (“REIT”) as a subsidiary of the Bank and is a New York State corporation. In addition to the REIT, the Company acquired four inactive subsidiaries: FAIC Insurance Services (a New York corporation formed in 2006), P4G8, LLC, FAIB Reacquisitions I, LLC and FAIB REO Acquisition II, LLC. FAIC Insurance services was dissolved in January 2020; the other three were dissolved in 2019. We acquired two statutory business trusts: TFC Statutory Trust in 2016 and FAIC Statutory Trust in 2018. These trusts issued trust preferred securities representing undivided preferred beneficial interests in the assets of the Trusts. The proceeds of these trust preferred securities were invested in certain securities issued by us, with similar terms to the relevant series of securities issued by the Trusts, which we refer to as subordinated debentures. RBB Bancorp has no significant business activity other than its investments in Royal Business Bank and RAM. Parent only condensed financial information on RBB Bancorp is provided in Note 22. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. It is reasonably possible our estimate of the allowance for loan losses and the fair value of mortgage servicing rights could change as actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, term federal funds sold and interest-bearing deposits in other financial institutions with original maturities of less than 90 days. Net cash flows are reported for customer loan and deposit transactions and interest-bearing deposits in other financial institutions. |
Cash and Due From Banks | Cash and Due from Banks Banking regulations require that banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. The reserves required to be held as of December 31, 2019 and 2018 were $29.5 million and $24.5 million, respectively. The Company maintains amounts in due from bank accounts, which may exceed federally insured limits. The Company has not experienced any losses in such accounts. |
Interest-Bearing Deposits in Other Financial Institutions | Interest-Bearing Deposits in Other Financial Institutions Interest-bearing deposits in other financial institutions not included in cash and cash equivalents are carried at cost and generally mature in one year or less. |
Investment Securities | Investment Securities Investment securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities not classified as held to maturity are classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates debt securities for other-than-temporary impairment ("OTTI") on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows; OTTI related to credit loss, which must be recognized in the income statement and; OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
Loans Held For Sale | Loans Held For Sale Mortgage loans originated or acquired and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans held for sale consist primarily of first trust deed mortgages on single-family residential properties located in California. Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of mortgage loans sold is determined by reducing the amount allocated to the servicing right, when applicable. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loans sold. |
Loans | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances reduced by any charge-offs or specific valuation accounts and net of any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Loan origination fees and certain direct origination costs are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when principal or interest is past due 90 days or when, in the opinion of management, there is reasonable doubt as to collectability based on contractual terms of the loan. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan's principal balance is deemed collectible. Interest accruals are resumed on such loans only when they are brought current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to all principal and interest. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management's judgment, should be charged-off. Amounts are charged-off when available information confirms that specific loans or portions thereof, are uncollectible. This methodology for determining charge-offs is consistently applied to each segment. The Company determines a separate allowance for each portfolio segment. The allowance consists of specific and general reserves. Specific reserves relate to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status, collateral value and the probability of collecting all amounts when due. Measurement of impairment is based on the expected future cash flows of an impaired loan, which are to be discounted at the loan's effective interest rate, or measured by reference to an observable market value, if one exists, or the fair value of the collateral for a collateral-dependent loan. The Company selects the measurement method on a loan-by-loan basis except that collateral-dependent loans for which foreclosure is probable are measured at the fair value of the collateral. The Company recognizes interest income on impaired loans based on its existing methods of recognizing interest income on nonaccrual loans. Loans, for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired with measurement of impairment as described above. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan's existing rate or at the fair value of collateral if repayment is expected solely from the collateral. General reserves cover non-impaired loans and are based on historical loss rates of peer institutions for each portfolio segment, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment's historical loss experience. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in economic conditions, changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and other relevant staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit and the effect of other external factors such as competition and legal and regulatory requirements. Portfolio segments identified by the Company include real estate, commercial and other loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios, and financial performance. |
Certain Acquired Loans | Certain Acquired Loans As part of business acquisitions, the Company acquires certain loans that have shown evidence of credit deterioration since origination. These acquired loans are recorded at the allocated fair value, such that there is no carryover of the seller's allowance for loan losses. Such acquired loans are accounted for individually. The Company estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan's contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
Servicing Rights | Servicing Rights When mortgage and Small Business Administration ("SBA") loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Servicing fee income, which is reported on the income statement as loan servicing fees, net of amortization , |
Transfer of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Gains on sales of mortgage, SBA and CRE loans totaled $9.9 million, $7.1 million, and $9.3 million in 2019, 2018, and 2017, respectively. Gains on sale of mortgage loans totaled $8.2 million, $4.3 million, and $3.7 million, and gains on sale of SBA loans totaled $1.5 million, $2.8 million, and $5.6 million in 2019, 2018, and 2017 respectively. Gains on sale of CRE totaled $152,000 in 2019 and none in 2018 and 2017. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises, leasehold improvements and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives, which is thirty years for premises and ranges from three to ten years for leasehold improvements and equipment. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the remaining lease term, whichever is shorter. Expenditures for betterments or major repairs are capitalized and those for ordinary repairs and maintenance are charged to operations as incurred. |
Other Real Estate Owned | Other Real Estate Owned Real estate acquired by foreclosure or deed in lieu of foreclosure is recorded at fair value at the date of foreclosure, establishing a new cost basis by a charge to the allowance for loan losses, if necessary. Other real estate owned is carried at the lower of the Company's carrying value of the property or its fair value, less estimated carrying costs and costs of disposition. Fair value is based on current appraisals less estimated selling costs. Any subsequent write-downs are charged against operating expenses and recognized as a valuation allowance. Operating expenses and related income of such properties and gains and losses on their disposition are included in other operating income and expenses. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill resulting from whole bank acquisitions is not amortized, but tested for impairment at least annually. The Company has selected December 31 as the date to perform the annual impairment test. Goodwill amounted to $58.6 million and $58.4 million as of December 31, 2019 and 2018, respectively, and is the only intangible asset with an indefinite life on the balance sheet. No impairment was recognized on goodwill during 2019 and 2018. Other intangible assets consist of core deposit intangible ("CDI") assets arising from whole bank acquisitions. CDI assets are amortized on an accelerated method over their estimated useful life of 8 to 10 years. CDI was recognized in the 2013 acquisition of Los Angeles National Bank and in the 2016 acquisition of TFC Holding Company and in the 2018 acquisition of FAIC. The unamortized balance as of December 31, 2019 and 2018 was $6.1 million and $7.6 million, respectively. Accumulated amortization as of December 31, 2019 and 2018 was $3.1 million and $1.6 million, respectively. CDI amortization expense was $1.5 million, $575,000, and $355,000 in 2019, 2018 and 2017, respectively. Estimated CDI amortization expense for the next 5 years is as follows (dollars in thousands): (dollars in thousands) Year ending December 31: 2020 $ 1,285 2021 1,056 2022 879 2023 749 2024 638 Thereafter 1,493 Total $ 6,100 |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company has purchased life insurance policies on a select group of employees and directors. Bank owned life insurance (“BOLI”) is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Increases of the cash value of these policies, as well as insurance proceeds received, are recorded in the other noninterest income and are not subject to income tax for as long as they are held for the life of the covered employee and director. |
FHLB Stock and Other Equity Securities | FHLB Stock and Other Equity Securities The Company is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Company also owns equity investment in banker’s bank stock. The Company adopted ASU 2016-01 on January 1, 2019, and elected the measurement alternative for measuring equity securities without readily determinable fair values at cost less impairment, plus or minus observable price changes in orderly transactions. As of December 31, 2019, the carrying amount of equity securities without readily determinable fair values were $324,000 for PCBB and $100,000 for ACBB. An estimated gain of $107,000 from PCBB and $40,000 from ACBB based on observable activity in these securities was recorded in the first quarter of 2019. As of December 31, 2019 the Company had several CRA equity investments without readily determinable fair values in the amount of $11.8 million, and $10.0 million at December 31, 2018. |
Stock-Based Compensation | Stock-Based Compensation Stock option compensation expense is calculated based on the fair value of the award at the grant date for those options expected to vest and is recognized as an expense over the vesting period of the grant using the straight-line method. The Company uses the Black-Scholes option pricing model to estimate the value of granted options. This model takes into account the option exercise price, the expected life, the current price of the underlying stock, the expected volatility of the Company’s stock, expected dividends on the stock and a risk-free interest rate. The Company estimates the expected volatility based on the Company’s historical stock prices for the period corresponding to the expected life of the stock options. Restricted stock units are valued at the closing price of the Company’s stock on the date of the grant. Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards. This cost is recognized over the period which an employee is required to provide services in exchange for the award, generally defined as the vesting period. When the options are exercised, the Company’s policy is to issue new shares of stock. The Company’s accounting policy is to recognize forfeitures as they occur. |
Income Taxes | Income Taxes The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. Tax effects from an uncertain tax position are recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense. |
Retirement Plans | Retirement Plans The Company established a 401(k) plan in 2010. The Company contributed $570,000, $341,000, and $272,000 in 2019, 2018 and 2017, respectively. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale. |
Financial Instruments | Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit as described in Note 13. Such financial instruments are recorded in the financial statements when they are funded. |
Earnings Per Share ("EPS") | Earnings Per Share ("EPS") Basic and diluted EPS are calculated using the two-class method since the Company has issued share-based payment awards considered participating securities because they entitle holders the rights to dividends during the vesting term. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. |
Fair Value Measurement | Fair Value Measurement F air value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Current accounting guidance establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect the Company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. See Note 17 and Note 18 for more information and disclosures relating to the Company's fair value measurements. |
Operating Segments | Operating Segments Management has determined that since generally all of the banking products and services offered by the Company are available in each branch of the Bank, all branches are located within the same economic environment and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate the Bank branches and report them as a single operating segment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements When RBB conducted its IPO in 2017, we qualified as an emerging growth company (“EGC”). We will remain an EGC until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.0 billion or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of our IPO, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the date on which we are deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended. We anticipate no longer qualifying as an EGC on January 1, 2023. EGCs are entitled to reduced regulatory and reporting requirements under the Securities Act and the Exchange Act. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU" or “Update”) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instrument (Topic 326) In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In November 2019, the FASB issued ASU 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), Codification Improvements—Share-Based Consideration Payable to a Customer In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), Effective Dates |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Future Estimated Amortization Expense | Estimated CDI amortization expense for the next 5 years is as follows (dollars in thousands): (dollars in thousands) Year ending December 31: 2020 $ 1,285 2021 1,056 2022 879 2023 749 2024 638 Thereafter 1,493 Total $ 6,100 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
First American International Corp. | |
Schedule of Assets Acquired and Liabilities Assumed and Fair Value Adjustments | The following table represents the assets acquired and liabilities assumed of FAIC FAIC Fair Value Fair (dollars in thousands) Book Value Adjustments Value Assets acquired Cash and cash equivalents $ 55,891 $ — $ 55,891 Fed funds sold 218 — 218 Interest-bearing deposits in other financial Institutions 3,801 — 3,801 Investments - held to maturity 30,814 (611 ) 30,203 Investments - available for sale 14,388 — 14,388 Mortgage loans held for sale 1,915 — 1,915 Loans, gross 721,732 (6,161 ) 715,571 Allowance for loan losses (9,583 ) 9,583 — Bank premises and equipment 5,785 3,439 9,224 Mortgage servicing rights 11,274 (660 ) 10,614 Core deposit premium — 6,738 6,738 Other assets 3,518 (2,119 ) 1,399 Total assets acquired $ 839,753 $ 10,209 $ 849,962 Liabilities assumed Deposits $ 629,609 $ 94 $ 629,703 FHLB advances 124,500 — 124,500 Subordinated debentures 7,217 (1,241 ) 5,976 Other liabilities 14,940 (1,153 ) 13,787 Total liabilities assumed 776,266 (2,300 ) 773,966 Excess of assets acquired over liabilities assumed 63,487 12,509 75,996 $ 839,753 $ 10,209 Stock consideration 69,602 Cash paid 34,837 Goodwill recognized $ 28,443 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities | The following table summarizes the amortized cost and fair value of available for sale (“AFS”) securities and held to maturity (“HTM”) securities at December 31, 2019 and 2018, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available for sale Government agency securities $ 1,591 $ — $ (19 ) $ 1,572 SBA agency securities 4,671 42 (22 ) 4,691 Mortgage-backed securities- Government sponsored agencies 19,126 74 (29 ) 19,171 Collateralized mortgage obligations 11,641 38 (25 ) 11,654 Corporate debt securities 88,700 281 — 88,981 Total $ 125,729 $ 435 $ (95 ) $ 126,069 Held to maturity Municipal taxable securities $ 3,505 $ 147 $ — $ 3,652 Municipal securities 4,827 153 — 4,980 Total $ 8,332 $ 300 $ — $ 8,632 December 31, 2018 Available for sale Government agency securities $ 1,873 $ — $ (58 ) $ 1,815 SBA agency securities 5,354 — (185 ) 5,169 Mortgage-backed securities- Government sponsored agencies 23,125 — (584 ) 22,541 Collateralized mortgage obligations 12,696 1 (631 ) 12,066 Corporate debt securities 32,615 105 (549 ) 32,171 Total $ 75,663 $ 106 $ (2,007 ) $ 73,762 Held to maturity Municipal taxable securities $ 4,290 $ 142 $ — $ 4,432 Municipal securities 5,671 1 (164 ) 5,508 Total $ 9,961 $ 143 $ (164 ) $ 9,940 |
Amortized Cost and Fair Value of Investment Securities Portfolio Expected Maturity | The amortized cost and fair value of the investment securities portfolio as of December 31, 2019 are shown by expected maturity below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Less than One Year More than One Year to Five Years More than Five Years to Ten Years More than Ten Years Total Amortized Estimated Amortized Estimated Amortized Estimated Amortized Estimated Amortized Estimated (dollars in thousands) Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value December 31, 2019 Government agency securities $ — $ — $ 1,591 $ 1,572 $ — $ — $ — $ — $ 1,591 $ 1,572 SBA securities — — 714 725 3,957 3,966 — — 4,671 4,691 Mortgage-backed securities- Government sponsored agencies 3,663 3,679 13,027 13,059 2,436 2,433 — — 19,126 19,171 Collateralized mortgage obligations — — 9,288 9,265 2,353 2,389 — — 11,641 11,654 Corporate debt securities 70,914 70,919 2,002 2,008 11,772 12,024 4,012 4,030 88,700 88,981 Total available for sale $ 74,577 $ 74,598 $ 26,622 $ 26,629 $ 20,518 $ 20,812 $ 4,012 $ 4,030 $ 125,729 $ 126,069 Municipal taxable securities $ 285 $ 289 $ 2,716 $ 2,784 $ 504 $ 579 $ — $ — $ 3,505 $ 3,652 Municipal securities — — 40 40 366 379 4,421 4,561 4,827 4,980 Total held to maturity $ 285 $ 289 $ 2,756 $ 2,824 $ 870 $ 958 $ 4,421 $ 4,561 $ 8,332 $ 8,632 |
Summary of Investment Securities With Unrealized Losses | The following table summarizes investment securities with unrealized losses at December 31, 2019 and December 31, 2018, aggregated by major security type and length of time in a continuous unrealized loss position: Less than Twelve Months Twelve Months or More Total (dollars in thousands) Unrealized Losses Estimated Fair Value No. of Issuances Unrealized Losses Estimated Fair Value No. of Issuances Unrealized Losses Estimated Fair Value No. of Issuances December 31, 2019 Government agency securities $ (19 ) $ 1,572 2 $ — $ — — $ (19 ) $ 1,572 2 SBA securities (22 ) 1,469 2 — — — (22 ) 1,469 2 Mortgage-backed securities- Government sponsored agencies (5 ) 2,631 4 (24 ) 3,912 6 (29 ) 6,543 10 Collateralized mortgage obligations (10 ) 5,738 3 (15 ) 953 2 (25 ) 6,691 5 Corporate debt securities — — — — — — — — — Total available for sale $ (56 ) $ 11,410 11 $ (39 ) $ 4,865 8 $ (95 ) $ 16,275 19 December 31, 2018 Government agency securities $ — $ — — $ (58 ) $ 1,815 2 $ (58 ) $ 1,815 2 SBA securities — — — (185 ) 5,169 4 (185 ) 5,169 4 Mortgage-backed securities- Government sponsored agencies (12 ) 1,640 1 (572 ) 20,901 23 (584 ) 22,541 24 Collateralized mortgage obligations — — — (631 ) 12,065 8 (631 ) 12,065 8 Corporate debt securities (61 ) 4,600 4 (488 ) 6,548 4 (549 ) 11,148 8 Total available for sale $ (73 ) $ 6,240 5 $ (1,934 ) $ 46,498 41 $ (2,007 ) $ 52,738 46 Municipal securities $ (104 ) $ 2,468 6 $ (60 ) $ 2,174 4 $ (164 ) $ 4,642 10 Total held to maturity $ (104 ) $ 2,468 6 $ (60 ) $ 2,174 4 $ (164 ) $ 4,642 10 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Balance and Activity Related to Allowance for Loan Losses for Held for Investment Loans and the Recorded Investments in Loans and Impairment method by Portfolio Segment | A summary of the changes in the allowance for loan losses as of December 31 follows: (dollars in thousands) 2019 2018 2017 Allowance for loan losses: Beginning balance $ 17,577 $ 13,773 $ 14,162 Additions (reductions) to the allowance charged to expense 2,390 4,469 (1,053 ) Recoveries on loans charged-off 108 36 747 Less loans charged-off (1,259 ) (701 ) (83 ) Ending balance $ 18,816 $ 17,577 $ 13,773 The following table presents the recorded investment in loans and impairment method as of December 31, 2019, 2018 and 2017 and the activity in the allowance for loan losses for the years then ended, by portfolio segment: (dollars in thousands) December 31, 2019 Real Estate Commercial Other Unallocated Total Allowance for loan losses: Beginning of year $ 13,437 $ 4,140 $ — $ — $ 17,577 Provisions 1,847 433 9 101 2,390 Charge-offs (166 ) (1,093 ) — — (1,259 ) Recoveries — 108 — — 108 $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 Reserves: Specific $ — $ — $ — $ — $ — General 15,118 3,588 9 101 18,816 $ 15,118 $ 3,588 $ 9 $ 101 $ 18,816 Loans evaluated for impairment: Individually $ 3,795 $ 9,423 $ — $ — $ 13,218 Collectively 1,842,747 340,148 821 — 2,183,716 $ 1,846,542 $ 349,571 $ 821 $ — $ 2,196,934 December 31, 2018 Real Estate Commercial Unallocated Total Allowance for loan losses: Beginning of year $ 9,309 $ 4,044 $ 420 $ 13,773 Provisions 4,128 761 (420 ) 4,469 Charge-offs — (701 ) — (701 ) Recoveries — 36 — 36 $ 13,437 $ 4,140 $ — $ 17,577 Reserves: Specific $ — $ 44 $ — $ 44 General 13,393 4,140 — 17,533 Loans acquired with deteriorated credit quality — — — — $ 13,437 $ 4,140 $ — $ 17,577 Loans evaluated for impairment: Individually $ 2,309 $ 972 $ — $ 3,281 Collectively 1,750,896 387,838 — 2,138,734 Loans acquired with deteriorated credit quality — — — — $ 1,753,205 $ 388,810 $ — $ 2,142,015 December 31, 2017 Real Estate Commercial Unallocated Total Allowance for loan losses: Beginning of year $ 8,111 $ 6,051 $ — $ 14,162 Provisions 1,198 (2,671 ) 420 (1,053 ) Charge-offs — (83 ) — (83 ) Recoveries — 747 — 747 $ 9,309 $ 4,044 $ 420 $ 13,773 Reserves: Specific $ — $ — $ — $ — General 9,309 4,044 420 13,773 Loans acquired with deteriorated credit quality — — — — $ 9,309 $ 4,044 $ 420 $ 13,773 Loans evaluated for impairment: Individually $ 2,420 $ 155 $ — $ 2,575 Collectively 834,152 412,032 — 1,246,184 Loans acquired with deteriorated credit quality 315 — — 315 $ 836,887 $ 412,187 $ — $ 1,249,074 |
Summary of Risk Category of Loans by Class of Loans | The risk category of loans by class of loans was as follows as of December 31, 2019 and 2018: (dollars in thousands) Special December 31, 2019 Pass Mention Substandard Impaired Total Real estate: Construction and land development $ 95,756 $ — $ — $ 264 $ 96,020 Commercial real estate 767,603 5,353 18,115 2,197 793,268 Single-family residential mortgages 955,327 — 593 1,334 957,254 Commercial: Commercial and industrial 265,178 4,078 5,330 — 274,586 SBA 61,496 189 3,877 9,423 74,985 Other: 821 — — — 821 $ 2,146,181 $ 9,620 $ 27,915 $ 13,218 $ 2,196,934 December 31, 2018 Real estate: Construction and land development $ 112,959 $ — $ — $ 276 $ 113,235 Commercial real estate 743,123 7,069 6,496 2,033 758,721 Single-family residential mortgages 880,860 — 389 — 881,249 Commercial: Commercial and industrial 295,226 6,286 2,798 — 304,310 SBA 79,057 — 4,471 972 84,500 $ 2,111,225 $ 13,355 $ 14,154 $ 3,281 $ 2,142,015 |
Summary of Aging Recorded Investment Past-due Loans | The following table presents the aging of the recorded investment in past-due loans as of December 31, 2019 and 2018 by class of loans: (dollars in thousands) 30-59 60-89 90 Days Total Loans Not Non- Accrual December 31, 2019 Days Days Or More Past Due Past Due Total Loans Loans (1) Real estate: Construction and land development $ — $ — $ — $ — $ 96,020 $ 96,020 $ — Commercial real estate — — 725 725 792,543 793,268 725 Single-family residential mortgages 1,454 1,560 450 3,464 953,790 957,254 1,334 Commercial: Commercial and industrial — — — — 274,586 274,586 — SBA 2,263 — 9,378 11,641 63,344 74,985 9,378 Other: — — — — 821 821 — $ 3,717 $ 1,560 $ 10,553 $ 15,830 $ 2,181,104 $ 2,196,934 $ 11,437 Real estate: Single-family residential mortgages held for sale $ — $ — $ — $ — $ 108,194 $ 108,194 $ — December 31, 2018 Real estate: Construction and land development $ — $ — $ — $ — $ 113,235 $ 113,235 $ — Commercial real estate — 678 — 678 758,043 758,721 — Single-family residential mortgages 1,548 950 — 2,498 878,751 881,249 — Commercial: Commercial and industrial — — — — 304,310 304,310 — SBA 957 — 914 1,871 82,629 84,500 914 $ 2,505 $ 1,628 $ 914 $ 5,047 $ 2,136,968 $ 2,142,015 $ 914 Real estate: Single-family residential mortgages held for sale $ — $ 458 $ — $ 458 $ 434,064 $ 434,522 $ — (1) Included in total loans |
Summary of Individually Impaired Loans Presented by Class of Loans | Information relating to individually impaired loans presented by class of loans was as follows as of December 31, 2019, 2018 and 2017: Unpaid (dollars in thousands) Principal Recorded Average Interest Related December 31, 2019 Balance Investment Balance Income Allowance With no related allowance recorded Construction and land development $ 264 $ 264 $ 271 $ 24 $ — Commercial real estate 2,198 2,197 2,384 100 — Residential mortgage loans 1,349 1,334 1,351 — — Commercial - SBA 9,423 9,423 10,791 4 — With related allowance recorded Commercial-SBA — — — — — Total $ 13,234 $ 13,218 $ 14,797 $ 128 $ — December 31, 2018 With no related allowance recorded Construction and land development $ 276 $ 276 $ 283 $ 23 $ — Commercial real estate 2,033 2,033 2,126 134 — Commercial - SBA 797 1,498 1,377 19 — With related allowance recorded Commercial-SBA 175 175 193 1 44 Total $ 3,281 $ 3,982 $ 3,979 $ 177 $ 44 December 31, 2017 With no related allowance recorded Construction and land development $ 289 $ 289 $ 296 $ 16 $ — Commercial real estate 2,131 2,131 2,192 297 — Commercial - SBA 155 155 78 15 — Total $ 2,575 $ 2,575 $ 2,566 $ 328 $ — |
Summary of Loans by Class Modified as TDRs | The following table presents loans by class modified as TDR's that occurred during the year ended December 31, 2019: Pre- Post- Modification Modification (dollars in thousands) Number of Recorded Recorded December 31, 2019 Loans Investment Investment Commercial real estate 1 $ 476 $ 476 |
Summary of Activity in Accretable Yield on Purchased Credit-impaired Loans | Below is a summary of activity in the accretable yield on purchased credit-impaired loans for 2019, 2018 and 2017: (dollars in thousands) 2019 2018 2017 Beginning balance $ — $ 7 $ 142 Disposals — — — Restructuring as TDR — — — Accretion of income — (7 ) (135 ) Ending balance $ — $ — $ 7 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loan Servicing [Abstract] | |
Schedule of Principal Balances of Mortgage and SBA Loans Serviced for Others | Mortgage and SBA loans serviced for others are not reported as assets. The principal balances as of December 31, 2019 and 2018 are as follows: (dollars in thousands) 2019 2018 Loans serviced for others: Mortgage loans $ 1,683,298 $ 1,586,499 SBA loans 170,849 184,664 Commercial real estate loans 4,216 2,838 |
Schedule of Activity for Servicing Assets | Activity for servicing assets follows: 2019 2018 2017 Mortgage SBA Mortgage SBA Mortgage SBA (dollars in thousands) Loans Loans Loans Loans Loans Loans Servicing assets: Beginning of period $ 12,858 $ 4,512 $ 1,540 $ 4,417 $ 1,002 $ 2,702 Acquisitions — — 10,651 — — — Additions 2,088 980 1,562 1,932 1,115 2,628 Disposals (128 ) (708 ) (197 ) (1,177 ) (172 ) (367 ) Amortized to expense (1,821 ) (698 ) (698 ) (660 ) (405 ) (546 ) End of period $ 12,997 $ 4,086 $ 12,858 $ 4,512 $ 1,540 $ 4,417 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment as of December 31 follows: (dollars in thousands) 2019 2018 Land $ 5,020 $ 5,020 Building and improvements 7,822 7,823 Furniture, fixtures, and equipment 6,252 4,833 Leasehold improvements 5,590 4,845 24,684 22,521 Less accumulated depreciation and amortization (8,102 ) (6,312 ) Construction in progress 231 1,098 $ 16,813 $ 17,307 |
Schedule of Future Minimum Rent Payments on Company's Leases | Future minimum rent payments on the Company's leases were as follows as of December 31, 2019: (dollars in thousands) Year ending December 31: 2020 $ 5,603 2021 4,634 2022 4,192 2023 3,250 2024 2,209 Thereafter 8,998 $ 28,886 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Maturities Of Time Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | At December 31, 2019 the scheduled maturities of time deposits are as follows: (dollars in thousands) One year $ 1,215,913 Two to three years 34,863 Over three years 1,909 Total $ 1,252,685 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | At December 31, 2019 and 2018, respectively, long-term debt was as follows: (dollars in thousands) 2019 2018 Principal $ 105,000 $ 105,000 Unamortized debt issuance costs $ 951 $ 1,292 |
Schedule of Interest and Amortization Expense | The following table presents interest and amortization expense the Company incurred for the year ended December 31, 2019 and 2018: For the Year Ended December 31, (dollars in thousands) 2019 2018 Interest Expense: Interest $ 6,649 $ 3,552 Amortization 342 162 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | Income tax expense consists of the following: (dollars in thousands) 2019 2018 2017 Current: Federal $ 8,074 $ 6,616 $ 12,097 State 5,614 3,451 3,773 13,688 10,067 15,870 Deferred 1,503 (131 ) 2,492 Deferred tax adjustment for change in tax rate 21 (479 ) 2,591 Amortization of investment in affordable housing tax credits 900 644 316 $ 16,112 $ 10,101 $ 21,269 |
Comparison of Federal Statutory Income Tax Rates to Effective Income Tax Rates | A comparison of the federal statutory income tax rates to the Company's effective income tax rates as of December 31 follows: 2019 2018 2017 (dollars in thousands) Amount Rate Amount Rate Amount Rate Statutory federal tax $ 11,617 21.0 % $ 9,703 21.0% $ 16,379 35.0 % State franchise tax, net of federal benefit 5,322 9.6 % 3,488 7.5% 3,135 6.7 % Tax-exempt income (25 ) 0.0 % (27 ) -0.1% (297 ) -0.6 % Tax impact from change in tax rate 17 0.0 % (479 ) -1.0% 2,591 5.5 % Stock-based compensation (27 ) 0.0 % (2,643 ) -5.7% — 0.0 % Other items, net (792 ) -1.4 % 59 0.1% (539 ) -1.2 % Actual tax expense $ 16,112 29.2 % $ 10,101 21.8 % $ 21,269 45.4 % |
Components of Net Deferred Tax Asset | The following is a summary of the components of the net deferred tax asset accounts recognized in the accompanying balance sheets as of December 31: (dollars in thousands) 2019 2018 Deferred tax assets: Pre-opening expenses $ 122 $ 154 Allowance for loan losses 5,883 5,545 Stock-based compensation 1,346 1,419 Off balance sheet reserve 258 217 Operating loss carryforwards 1,253 1,688 Other real estate owned 37 10 Unrealized loss on AFS securities — 600 Mark to market on held for sale mortgage loans 359 2,451 Other 1,594 1,220 10,852 13,304 Deferred tax liabilities: Depreciation (282 ) (521 ) Unrealized gain on AFS securities (106 ) — Acquisition accounting fair value adjustments (2,671 ) (2,067 ) Mortgage servicing rights (3,745 ) (3,586 ) Other (1,722 ) (2,488 ) (8,526 ) (8,662 ) Net deferred tax assets $ 2,326 $ 4,642 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Financial Commitments whose Contractual Amount Represents Credit Risk | As of December 31, 2019 and 2018, the Company had the following financial commitments whose contractual amount represents credit risk: 2019 2018 Fixed Variable Fixed Variable (dollars in thousands) Rate Rate Rate Rate Commitments to make loans $ — $ 167,496 $ 5,211 $ 125,610 Unused lines of credit 55,789 102,841 61,191 75,908 Commercial and similar letters of credit — 358 1,042 — Standby letters of credit 2,485 1,230 2,701 673 $ 58,274 $ 271,925 $ 70,145 $ 202,191 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Loans to principal officers, directors, and their affiliates were as follows: (dollars in thousands) 2019 2018 Beginning balance $ 3,600 $ 2,300 New loans and advances 16,180 7,400 Repayments (15,780 ) $ (6,100 ) Ending balance $ 4,000 $ 3,600 |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Weighted Average Assumption for Fair Value of Option Grant Estimated Using Black-Scholes Option Pricing Model | The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions presented below for 2019 and 2016. There were no stock options granted in 2018 and 2017. 2019 2016 Expected volatility 35.0 % 35.0 % Expected term 6.0 years 6.0 years Expected dividends 1.90 % None Risk free rate 2.66 % 1.93 % Grant date fair value $ 6.32 $ 6.76 |
Summary of Stock Option Plan | A summary of the status of the Company's stock option plan as of December 31, 2019 and changes during the year then ended is presented below: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic (dollars in thousands, except for share amounts) Shares Price Term Value Outstanding at beginning of year 1,215,097 $ 12.83 Granted 76,500 18.38 Exercised (200,629 ) 13.43 Outstanding at end of year 1,090,968 $ 13.11 4.07 years $ 8,790 Options exercisable 1,014,468 $ 12.72 3.69 years $ 8,577 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Summary of Actual Capital Amounts and Ratios and Related Regulatory Requirements | The following table sets forth RBB Bancorp's consolidated and the Bank's actual capital amounts and ratios and related regulatory requirements for the Bank as of December 31, 2019: Amount of Capital Required To Be Well-Capitalized Minimum Required for Under Prompt Corrective Actual Capital Adequacy Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Tier 1 Leverage Ratio Consolidated $ 353,572 12.89 % NA NA NA NA Bank 417,036 15.23 % $ 108,150 4.0 % $ 135,187 5.0 % Common Equity Tier 1 Risk-Based Capital Ratio Consolidated $ 343,899 17.16 % NA NA NA NA Bank 417,036 20.87 % 89,127 4.5 % 128,739 6.5 % Tier 1 Risk-Based Capital Ratio Consolidated $ 353,572 17.65 % NA NA NA NA Bank 417,036 20.87 % 118,836 6.0 % 158,448 8.0 % Total Risk-Based Capital Ratio Consolidated $ 477,262 23.82 % NA NA NA NA Bank 436,677 21.86 % 158,448 8.0 % 198,061 10.0 % The following table sets forth RBB Bancorp's consolidated and the Bank's actual capital amounts and ratios and related regulatory requirements for the Bank as of December 31, 2018: Amount of Capital Required To Be Well-Capitalized Minimum Required for Under Prompt Corrective Actual Capital Adequacy Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018: Tier 1 Leverage Ratio Consolidated $ 321,407 11.80 % NA NA NA NA Bank 370,304 13.66 % $ 108,445 4.0 % $ 135,556 5.0 % Common Equity Tier 1 Risk Based Capital Ratio Consolidated $ 311,901 15.28 % NA NA NA NA Bank 370,304 18.17 % $ 91,722 4.5 % $ 132,487 6.5 % Tier 1 Risk-Based Capital Ratio Consolidated $ 321,407 15.74 % NA NA NA NA Bank 370,304 18.17 % 122,296 6.0 % $ 163,061 8.0 % Total Risk-Based Capital Ratio Consolidated $ 443,379 21.71 % NA NA NA NA Bank 388,569 19.07 % $ 163,061 8.0 % $ 203,826 10.0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Hierarchy and Fair Value for Each Major Category of Assets and Liabilities Measured at Fair Value | The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value at December 31, 2019 and 2018: (dollars in thousands) Fair Value Measurements Using: December 31, 2019 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ — $ 1,572 $ — $ 1,572 SBA agency securities — 4,691 — 4,691 Mortgage-backed securities — 19,171 — 19,171 Collateralized mortgage obligations — 11,654 — 11,654 Commercial paper — 69,898 69,898 Corporate debt securities — 19,083 — 19,083 $ — $ 126,069 $ — $ 126,069 On a non-recurring basis: Other real estate owned — — 293 293 $ — $ — $ 293 $ 293 December 31, 2018 Level 1 Level 2 Level 3 Total Assets measured at fair value: On a recurring basis: Securities available for sale Government agency securities $ — $ 1,815 $ — $ 1,815 SBA agency securities — 5,169 — 5,169 Mortgage-backed securities — 22,541 — 22,541 Collateralized mortgage obligations — 12,066 — 12,066 Commercial paper — 14,918 14,918 Corporate debt securities — 17,253 — 17,253 $ — $ 73,762 $ — $ 73,762 On a non-recurring basis: Commercial real estate - collateral dependent impaired loans $ — — $ 123 $ 123 Other real estate owned — — $ 1,101 $ 1,101 $ — $ — $ 1,224 $ 1,224 |
Summary of Quantitative Information About Non-recurring Level 3 Fair Value Measurements | Quantitative information about the Company's non-recurring Level 3 fair value measurements as of December 31, 2019 and 2018 is as follows: Weighted- (dollars in thousands) Fair Value Valuation Unobservable Adjustment Average December 31, 2019 Amount Technique Input Range Adjustment Other real estate owned $ 293 Third Party Management Adjustments 29% 29% Appraisals to Reflect Current Conditions and Selling Costs December 31, 2018 Other real estate owned $ 1,101 Third Party Management Adjustments 16% 16% Appraisals to Reflect Current Conditions and Selling Costs |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy Level and Estimated Fair Value of Significant Financial Instruments | The fair value hierarchy level and estimated fair value of significant financial instruments at December 31, 2019 and 2018 are summarized as follows: 2019 2018 Fair Value Carrying Fair Carrying Fair (dollars in thousands) Hierarchy Value Value Value Value Financial Assets: Cash and due from banks Level 1 $ 114,763 $ 114,763 $ 147,685 $ 147,685 Federal funds sold and other cash equivalents Level 1 67,000 67,000 — — Interest-earning deposits in other financial institutions Level 1 600 600 600 600 Investment securities - AFS Level 2 126,069 126,069 73,762 73,762 Investment securities - HTM Level 2 8,332 8,632 9,961 9,940 Mortgage loans held for sale Level 1 108,194 109,385 434,522 438,948 Loans, net Level 3 2,178,118 2,158,970 2,124,438 2,114,341 Equity securities Level 3 11,826 11,826 10,039 10,039 Mortgage servicing rights Level 2 17,083 20,752 17,370 21,361 Financial Liabilities: Deposits Level 2 $ 2,248,938 $ 2,236,329 $ 2,144,041 $ 2,143,196 FHLB advances Level 2 — — 319,500 319,500 Long-term debt Level 2 104,049 109,877 103,708 79,756 Subordinated debentures Level 3 9,673 11,709 9,506 10,356 |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Shares Outstanding to Income and Number of Shares Used to Compute EPS | The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute EPS: 2019 2018 2017 (dollars in thousands except per share amounts) Income Shares Income Shares Income Shares Net income as reported $ 39,209 $ 36,105 $ 25,528 Less: Earnings allocated to Participating Securities (74 ) — — Shares outstanding 20,030,866 20,000,022 15,908,893 Impact of weighting shares (13,560 ) (2,848,800 ) (1,830,612 ) Used in basic EPS 39,135 20,017,306 36,105 17,151,222 25,528 14,078,281 Dilutive effect of outstanding Stock options 376,118 816,431 1,160,084 Used in dilutive EPS $ 39,135 20,393,424 $ 36,105 17,967,653 $ 25,528 15,238,365 Basic earnings per common share $ 1.96 $ 2.11 $ 1.81 Diluted earnings per common share 1.92 2.01 1.68 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue From Contracts With Customers in-Scope and Not in-Scope under Topic 606 | The following is a summary of revenue from contracts with customers that are in-scope and not in-scope under Topic 606: For the Year Ended December 31, (dollars in thousands) 2019 2018 2017 Non-interest income, in scope (1) Fees and service charges on deposit accounts $ 1,366 $ 1,115 $ 1,164 Other fees (2) 1,118 723 145 Other income (3) 1,429 709 501 (Loss) gain on sale of OREO and fixed assets (100 ) — 142 Total in-scope non-interest income 3,813 2,547 1,952 Non-interest income, not in scope (4) 14,507 10,295 11,249 Total non-interest income $ 18,320 $ 12,842 $ 13,201 (1) There were no adjustments to the Company's financial statements recorded as a result of the adoption of ASC 606. (2) Other fees consists of wealth management fees, miscellaneous loan fees and postage/courier fees. (3) Other income consists of safe deposit box rental income, wire transfer fees, security brokerage fees, annuity sales, insurance activity, and OREO income. (4) The amounts primarily represent revenue from contracts with customers that are out of scope of ASC606: Net loan servicing income, letter of credit commissions, import/export commissions, recoveries on purchased loans, BOLI income, and gains (losses) on sales of mortgage loans, loans and investment securities. |
Parent Only Condensed Financi_2
Parent Only Condensed Financial Information (Tables) - RBB Bancorp | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Line Items] | |
Schedule of Parent Only Condensed Statements of Financial Condition | Condensed Statements of Financial Condition (Dollars in Thousands) 2019 2018 ASSETS Cash and cash equivalents $ 29,985 $ 45,540 Investment in Bank 480,703 433,023 Investment in RAM 6,870 6,796 Other assets 4,202 2,820 Total assets $ 521,760 $ 488,179 LIABILITIES AND SHAREHOLDERS' EQUITY Long term debt 104,049 103,708 Subordinated debentures 9,673 9,506 Other liabilities 348 344 Total liabilities 114,070 113,558 Shareholders' equity: Common stock 290,395 288,610 Additional paid-in capital 4,938 5,659 Retained earnings 112,046 81,618 Non-controlling interest 72 72 Accumulated other comprehensive income (loss) 239 (1,338 ) Total shareholders' equity 407,690 374,621 Total liabilities and shareholders' equity $ 521,760 $ 488,179 |
Schedule of Parent Only Condensed Statements of Income | Condensed Statements of Income (Dollars in Thousands) 2019 2018 2017 Interest income $ — $ 15 $ — Interest expense 7,697 4,083 3,629 Noninterest expense 1,300 1,255 642 Loss before equity in undistributed income of subsidiaries (8,997 ) (5,323 ) (4,271 ) Equity in undistributed income of: Bank 45,324 39,198 27,620 RAM 74 528 143 Income before income taxes 36,401 34,403 23,492 Income tax benefit 2,808 1,702 2,036 Net income 39,209 36,105 25,528 Other comprehensive income (loss) 1,577 (895 ) (104 ) Total comprehensive income $ 40,786 $ 35,210 $ 25,424 |
Schedule of Parent Only Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (Dollars in Thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 39,209 $ 36,105 $ 25,528 Net amortization of other 508 268 235 Provision for deferred income taxes 513 (1,905 ) 1,807 Undistributed income of subsidiaries (45,398 ) (39,726 ) (27,763 ) Change in other assets and liabilities (1,981 ) 3,492 (3,923 ) (7,149 ) (1,766 ) (4,116 ) Cash flows from investment activities: Net cash acquired (outlay) in connection with acquisition — (41,358 ) — Investment in subsidiaries — (15,000 ) (25,000 ) — (56,358 ) (25,000 ) Cash flows from financing activities: Issuance of subordinated debentures, net of issuance costs — 54,018 — Issuance of common stock, net of issuance costs — — 60,210 Dividends paid (8,033 ) (5,753 ) (5,118 ) Common stock repurchased, net of repurchased costs (3,190 ) Stock options exercised 2,817 9,630 2,296 (8,406 ) 57,895 57,388 Increase in cash and cash equivalents (15,555 ) (229 ) 28,272 Cash and cash equivalents beginning of year 45,540 45,769 17,497 Cash and cash equivalents end of year $ 29,985 $ 45,540 $ 45,769 |
Quarterly Income Statements (_2
Quarterly Income Statements (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Condensed Income Statements | The following table presents the unaudited quarterly condensed income statements for the years 2019 and 2018. 2019 2018 (dollars in thousands) 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Interest income $ 33,907 $ 34,669 $ 35,943 $ 37,206 $ 35,181 $ 24,473 $ 22,284 $ 20,177 Interest expense 10,784 11,157 11,626 11,294 9,599 5,857 4,457 3,732 Net interest income 23,123 23,512 24,317 25,912 25,582 18,616 17,827 16,445 Provision for credit losses 659 824 357 550 1,890 1,695 700 184 Net interest income after provision for credit losses 22,464 22,688 23,960 25,362 23,692 16,921 17,127 16,261 Noninterest income: 5,823 2,799 5,496 4,202 5,489 2,105 2,793 2,455 Noninterest expense: 13,463 13,786 14,899 15,325 15,503 8,654 8,191 8,289 Income before income taxes 14,824 11,701 14,557 14,239 13,678 10,372 11,729 10,427 Income tax expense 4,149 3,689 4,415 3,859 4,188 2,041 2,292 1,580 Net income $ 10,675 $ 8,012 $ 10,142 $ 10,380 $ 9,490 $ 8,331 $ 9,437 $ 8,847 Net income per share Basic $ 0.53 $ 0.40 $ 0.51 $ 0.52 $ 0.48 $ 0.50 $ 0.58 $ 0.55 Diluted 0.52 0.39 0.50 0.51 0.47 0.48 0.54 0.52 |
Business Description - Addition
Business Description - Additional Information (Details) $ / shares in Units, $ in Thousands | Jul. 31, 2017$ / sharesshares | Dec. 31, 2019USD ($) | Oct. 15, 2018AcquisitionBranch | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Description Of Business [Line Items] | ||||||
Total assets | $ 2,788,535 | $ 2,974,002 | ||||
Gross consolidated loans held for investment and held for sale | 2,300,000 | |||||
Total deposits | 2,248,938 | 2,144,041 | ||||
Total stockholders' Equity | $ 407,690 | $ 374,621 | $ 265,176 | $ 181,585 | ||
Number of acquisitions | Acquisition | 5 | |||||
First American International Bank | Queens | ||||||
Description Of Business [Line Items] | ||||||
Number of branches operated | Branch | 3 | |||||
First American International Bank | Manhattan | ||||||
Description Of Business [Line Items] | ||||||
Number of branches operated | Branch | 2 | |||||
First American International Bank | Brooklyn | ||||||
Description Of Business [Line Items] | ||||||
Number of branches operated | Branch | 2 | |||||
Initial Public Offering | ||||||
Description Of Business [Line Items] | ||||||
Number of shares issued in offering | shares | 3,750,000 | |||||
Share price per share | $ / shares | $ 23 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)SubsidiaryTrust | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of inactive subsidiaries acquired | Subsidiary | 4 | |||
Number of statutory business trusts acquired | Trust | 2 | |||
Cash and due from banks, reserves required to be held | $ 29,500,000 | $ 24,500,000 | ||
Debt securities evaluation for other-than-temporary impairment, measurement basis | quarterly | |||
Threshold period past due principal or interest, to discontinue accrual of interest on loans | 90 days | |||
Gain on sale of loans | $ 9,893,000 | 7,126,000 | $ 9,318,000 | |
Gains on sale of mortgage loans, total | 8,200,000 | 4,300,000 | 3,700,000 | |
Gains on sale of SBA loans, total | 1,500,000 | 2,800,000 | 5,600,000 | |
Gains on sale of CRE, total | 152,000 | 0 | 0 | |
Goodwill | 58,563,000 | 58,383,000 | ||
Impairment losses recognized on goodwill | 0 | 0 | ||
Amortization of intangibles | 4,856,000 | 3,302,000 | 1,845,000 | |
Total gross loans | $ 2,300,000,000 | |||
Percentage of gross loans with LIBOR based reference rate | 25.00% | |||
Out-of-Scope Topic 606 | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of non interest income | 79.00% | |||
ASU 2014-09 | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of non interest income | 21.00% | |||
401(k) Plan | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Contributions to plan | $ 570,000 | 341,000 | 272,000 | |
CRA Investments | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Carrying amount of equity securities without readily determinable fair values | 11,800,000 | 10,000,000 | ||
Pacific Coast Bankers' Bank | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Carrying amount of equity securities without readily determinable fair values | 324,000 | |||
Estimated gain on equity securities | $ 107,000 | |||
Atlantic Community Bankers’ Bank | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Carrying amount of equity securities without readily determinable fair values | 100,000 | |||
Estimated gain on equity securities | $ 40,000 | |||
Core Deposit Intangible | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Unamortized balance of intangible assets | 6,100,000 | 7,600,000 | ||
Accumulated amortization | 3,100,000 | 1,600,000 | ||
Amortization of intangibles | $ 1,500,000 | 575,000 | 355,000 | |
Premises | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of assets | 30 years | |||
Mortgage, SBA and CRE | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Gain on sale of loans | $ 9,900,000 | $ 7,100,000 | $ 9,300,000 | |
Minimum | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Right-of-use asset | 25,000,000 | |||
Lease liability | $ 25,000,000 | |||
Minimum | Core Deposit Intangible | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets, estimated useful life | 8 years | |||
Minimum | Leasehold Improvements | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of assets | 3 years | |||
Minimum | Equipment | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of assets | 3 years | |||
Maximum | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents maturity period | 90 days | |||
Right-of-use asset | $ 30,000,000 | |||
Lease liability | $ 30,000,000 | |||
Maximum | Core Deposit Intangible | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets, estimated useful life | 10 years | |||
Maximum | Leasehold Improvements | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of assets | 10 years | |||
Maximum | Equipment | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of assets | 10 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Future Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 1,285 |
2021 | 1,056 |
2022 | 879 |
2023 | 749 |
2024 | 638 |
Thereafter | 1,493 |
Total | $ 6,100 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Thousands | Jan. 10, 2020USD ($)BranchBusiness | Oct. 15, 2018USD ($)Branchshares | Oct. 15, 2018USD ($)AcquisitionBranch | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 58,563 | $ 58,383 | |||
Number of acquisitions | Acquisition | 5 | ||||
First American International Corp. | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 34,837 | ||||
Business acquisition, stock value of acquirer | $ 69,602 | ||||
Business acquisition, common shares issued | shares | 3,011,762 | ||||
Goodwill | $ 28,443 | $ 28,443 | |||
Business Combination, Identifiable assets acquired | 849,962 | 849,962 | |||
Deposits | $ 629,703 | $ 629,703 | |||
First American International Corp. | New York | |||||
Business Acquisition [Line Items] | |||||
Number of branches operated | Branch | 9 | 9 | |||
PGB | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 32,900 | ||||
Business acquisition, date | Jan. 10, 2020 | ||||
PGB | Illinois | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Identifiable assets acquired | $ 217,600 | ||||
Deposits | $ 192,300 | ||||
Number of acquisitions | Business | 1 | ||||
Number of branches | Branch | 3 |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed and Fair Value Adjustments (Details) - USD ($) $ in Thousands | Oct. 15, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill recognized | $ 58,563 | $ 58,383 | |
First American International Corp. | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 55,891 | ||
Fed funds sold | 218 | ||
Interest-bearing deposits in other financial Institutions | 3,801 | ||
Investments - held to maturity | 30,203 | ||
Investments - available for sale | 14,388 | ||
Mortgage loans held for sale | 1,915 | ||
Loans, gross | 715,571 | ||
Bank premises and equipment | 9,224 | ||
Mortgage servicing rights | 10,614 | ||
Core deposit premium | 6,738 | ||
Other assets | 1,399 | ||
Total assets acquired | 849,962 | ||
Deposits | 629,703 | ||
FHLB advances | 124,500 | ||
Subordinated debentures | 5,976 | ||
Other liabilities | 13,787 | ||
Total liabilities assumed | 773,966 | ||
Excess of assets acquired over liabilities assumed | 75,996 | ||
Stock consideration | 69,602 | ||
Cash paid | 34,837 | ||
Goodwill recognized | 28,443 | ||
First American International Corp. | Book Value | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 55,891 | ||
Fed funds sold | 218 | ||
Interest-bearing deposits in other financial Institutions | 3,801 | ||
Investments - held to maturity | 30,814 | ||
Investments - available for sale | 14,388 | ||
Mortgage loans held for sale | 1,915 | ||
Loans, gross | 721,732 | ||
Allowance for loan losses | (9,583) | ||
Bank premises and equipment | 5,785 | ||
Mortgage servicing rights | 11,274 | ||
Other assets | 3,518 | ||
Total assets acquired | 839,753 | ||
Deposits | 629,609 | ||
FHLB advances | 124,500 | ||
Subordinated debentures | 7,217 | ||
Other liabilities | 14,940 | ||
Total liabilities assumed | 776,266 | ||
Excess of assets acquired over liabilities assumed | 63,487 | ||
Business combination, Recognized identifiable assets acquired and liabilities assumed, net | 839,753 | ||
First American International Corp. | Fair Value Adjustments | |||
Business Acquisition [Line Items] | |||
Investments - held to maturity | (611) | ||
Loans, gross | (6,161) | ||
Allowance for loan losses | 9,583 | ||
Bank premises and equipment | 3,439 | ||
Mortgage servicing rights | (660) | ||
Core deposit premium | 6,738 | ||
Other assets | (2,119) | ||
Total assets acquired | 10,209 | ||
Deposits | 94 | ||
Subordinated debentures | (1,241) | ||
Other liabilities | (1,153) | ||
Total liabilities assumed | (2,300) | ||
Excess of assets acquired over liabilities assumed | 12,509 | ||
Business combination, Recognized identifiable assets acquired and liabilities assumed, net | $ 10,209 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities - (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | $ 125,729 | $ 75,663 |
Available for sale, Gross Unrealized Gains | 435 | 106 |
Available for sale, Gross Unrealized Losses | (95) | (2,007) |
Available for sale, Fair Value | 126,069 | 73,762 |
Held to maturity, Amortized Cost | 8,332 | 9,961 |
Held to maturity, Gross Unrealized Gains | 300 | 143 |
Held to maturity, Gross Unrealized Losses | (164) | |
Securities held to maturity, fair value | 8,632 | 9,940 |
Government Agency Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 1,591 | 1,873 |
Available for sale, Gross Unrealized Losses | (19) | (58) |
Available for sale, Fair Value | 1,572 | 1,815 |
SBA Agency Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 4,671 | 5,354 |
Available for sale, Gross Unrealized Gains | 42 | |
Available for sale, Gross Unrealized Losses | (22) | (185) |
Available for sale, Fair Value | 4,691 | 5,169 |
Mortgage-Backed Securities - Government Sponsored Agencies | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 19,126 | 23,125 |
Available for sale, Gross Unrealized Gains | 74 | |
Available for sale, Gross Unrealized Losses | (29) | (584) |
Available for sale, Fair Value | 19,171 | 22,541 |
Collateralized Mortgage Obligations | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 11,641 | 12,696 |
Available for sale, Gross Unrealized Gains | 38 | 1 |
Available for sale, Gross Unrealized Losses | (25) | (631) |
Available for sale, Fair Value | 11,654 | 12,066 |
Corporate Debt Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available for sale, Amortized Cost | 88,700 | 32,615 |
Available for sale, Gross Unrealized Gains | 281 | 105 |
Available for sale, Gross Unrealized Losses | (549) | |
Available for sale, Fair Value | 88,981 | 32,171 |
Municipal Taxable Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 3,505 | 4,290 |
Held to maturity, Gross Unrealized Gains | 147 | 142 |
Securities held to maturity, fair value | 3,652 | 4,432 |
Municipal Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 4,827 | 5,671 |
Held to maturity, Gross Unrealized Gains | 153 | 1 |
Held to maturity, Gross Unrealized Losses | (164) | |
Securities held to maturity, fair value | $ 4,980 | $ 5,508 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security | Dec. 31, 2017USD ($) | |
Investments Debt And Equity Securities [Abstract] | |||
Proceeds from sale of securities | $ 6,143,000 | $ 44,591,000 | $ 0 |
Gross gains recognized on sale of securities | $ 7,000 | $ 5,000 | |
Number of investment securities pledged as collateral | Security | 1 | 1 | |
Fair value of securities pledged to secure local agency deposit | $ 627,000 | $ 697,000 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Investment Securities Portfolio Expected Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Amortized Cost | $ 74,577 | |
More than one year to five years, Available for sale, Amortized Cost | 26,622 | |
More than five years to ten years, Available for sale, Amortized Cost | 20,518 | |
More than ten years, Available for sale, Amortized Cost | 4,012 | |
Available for sale, Amortized Cost | 125,729 | $ 75,663 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Estimated Fair Value | 74,598 | |
More than one year, Available for sale, Estimated Fair Value | 26,629 | |
More than five years to ten years, Available for sale, Estimated Fair Value | 20,812 | |
More than ten years, Available for sale, Estimated Fair Value | 4,030 | |
Available for sale, Estimated Fair value | 126,069 | 73,762 |
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
Less than one year, Held to Maturity, Amortized Cost | 285 | |
More than one year to five years, Held to Maturity, Amortized Cost | 2,756 | |
More than five years to ten years, Held to Maturity, Amortized Cost | 870 | |
Due from ten years and greater, Held to Maturity, Amortized Cost | 4,421 | |
Held to maturity, Amortized Cost | 8,332 | 9,961 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
'Less than one year, Held to Maturity, Estimated Fair Value | 289 | |
More than one year to five years, Held to Maturity, Estimated Fair Value | 2,824 | |
More than five years to ten years, Held to maturity, Estimated Fair Value | 958 | |
More than Ten Years,Held to maturity estimated fair value | 4,561 | |
Held to Maturity, Estimated Fair Value | 8,632 | 9,940 |
Government Agency Securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
More than one year to five years, Available for sale, Amortized Cost | 1,591 | |
Available for sale, Amortized Cost | 1,591 | 1,873 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
More than one year, Available for sale, Estimated Fair Value | 1,572 | |
Available for sale, Estimated Fair value | 1,572 | 1,815 |
SBA Securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
More than one year to five years, Available for sale, Amortized Cost | 714 | |
More than five years to ten years, Available for sale, Amortized Cost | 3,957 | |
Available for sale, Amortized Cost | 4,671 | 5,354 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
More than one year, Available for sale, Estimated Fair Value | 725 | |
More than five years to ten years, Available for sale, Estimated Fair Value | 3,966 | |
Available for sale, Estimated Fair value | 4,691 | 5,169 |
Mortgage-Backed Securities - Government Sponsored Agencies | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Amortized Cost | 3,663 | |
More than one year to five years, Available for sale, Amortized Cost | 13,027 | |
More than five years to ten years, Available for sale, Amortized Cost | 2,436 | |
Available for sale, Amortized Cost | 19,126 | 23,125 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Estimated Fair Value | 3,679 | |
More than one year, Available for sale, Estimated Fair Value | 13,059 | |
More than five years to ten years, Available for sale, Estimated Fair Value | 2,433 | |
Available for sale, Estimated Fair value | 19,171 | 22,541 |
Collateralized Mortgage Obligations | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
More than one year to five years, Available for sale, Amortized Cost | 9,288 | |
More than five years to ten years, Available for sale, Amortized Cost | 2,353 | |
Available for sale, Amortized Cost | 11,641 | 12,696 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
More than one year, Available for sale, Estimated Fair Value | 9,265 | |
More than five years to ten years, Available for sale, Estimated Fair Value | 2,389 | |
Available for sale, Estimated Fair value | 11,654 | 12,066 |
Corporate Debt Securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Amortized Cost | 70,914 | |
More than one year to five years, Available for sale, Amortized Cost | 2,002 | |
More than five years to ten years, Available for sale, Amortized Cost | 11,772 | |
More than ten years, Available for sale, Amortized Cost | 4,012 | |
Available for sale, Amortized Cost | 88,700 | 32,615 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year, Available for sale, Estimated Fair Value | 70,919 | |
More than one year, Available for sale, Estimated Fair Value | 2,008 | |
More than five years to ten years, Available for sale, Estimated Fair Value | 12,024 | |
More than ten years, Available for sale, Estimated Fair Value | 4,030 | |
Available for sale, Estimated Fair value | 88,981 | 32,171 |
Municipal Taxable Securities | ||
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
Less than one year, Held to Maturity, Amortized Cost | 285 | |
More than one year to five years, Held to Maturity, Amortized Cost | 2,716 | |
More than five years to ten years, Held to Maturity, Amortized Cost | 504 | |
Held to maturity, Amortized Cost | 3,505 | 4,290 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
'Less than one year, Held to Maturity, Estimated Fair Value | 289 | |
More than one year to five years, Held to Maturity, Estimated Fair Value | 2,784 | |
More than five years to ten years, Held to maturity, Estimated Fair Value | 579 | |
Held to Maturity, Estimated Fair Value | 3,652 | 4,432 |
Municipal Securities | ||
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
More than one year to five years, Held to Maturity, Amortized Cost | 40 | |
More than five years to ten years, Held to Maturity, Amortized Cost | 366 | |
Due from ten years and greater, Held to Maturity, Amortized Cost | 4,421 | |
Held to maturity, Amortized Cost | 4,827 | 5,671 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
More than one year to five years, Held to Maturity, Estimated Fair Value | 40 | |
More than five years to ten years, Held to maturity, Estimated Fair Value | 379 | |
More than Ten Years,Held to maturity estimated fair value | 4,561 | |
Held to Maturity, Estimated Fair Value | $ 4,980 | $ 5,508 |
Investment Securities - Summa_2
Investment Securities - Summary of Investment Securities With Unrealized Losses (Details) $ in Thousands | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (56) | $ (73) |
Less than Twelve Months Estimated Fair Value | $ 11,410 | $ 6,240 |
Less than Twelve Months No. of Issuances | Security | 11 | 5 |
Twelve Months or More Unrealized Losses | $ (39) | $ (1,934) |
Twelve Months or More Estimated Fair Value | $ 4,865 | $ 46,498 |
Twelve Months or More No. of Issuances | Security | 8 | 41 |
Total Unrealized Losses | $ (95) | $ (2,007) |
Total Estimated Fair Value | $ 16,275 | $ 52,738 |
Available for sale, Total No. of Issuances | Security | 19 | 46 |
Held to maturity, Less than Twelve Months Unrealized Losses | $ (104) | |
Held to maturity, Less than Twelve Months Estimated Fair Value | $ 2,468 | |
Held to maturity, Less than Twelve Months, No. of Issuances | Security | 6 | |
Held to maturity, Twelve Months or More Unrealized Losses | $ (60) | |
Held to maturity, Twelve Months or More Estimated Fair Value | $ 2,174 | |
Held to maturity, Twelve Months or More, No. of Issuances | Security | 4 | |
Held to maturity, Total Unrealized Losses | $ (164) | |
Held to maturity, Total Estimated Fair Value | $ 4,642 | |
Held to maturity, Total No. of Issuances | Security | 10 | |
Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (19) | |
Less than Twelve Months Estimated Fair Value | $ 1,572 | |
Less than Twelve Months No. of Issuances | Security | 2 | |
Twelve Months or More Unrealized Losses | $ (58) | |
Twelve Months or More Estimated Fair Value | $ 1,815 | |
Twelve Months or More No. of Issuances | Security | 2 | |
Total Unrealized Losses | $ (19) | $ (58) |
Total Estimated Fair Value | $ 1,572 | $ 1,815 |
Available for sale, Total No. of Issuances | Security | 2 | 2 |
SBA Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (22) | |
Less than Twelve Months Estimated Fair Value | $ 1,469 | |
Less than Twelve Months No. of Issuances | Security | 2 | |
Twelve Months or More Unrealized Losses | $ (185) | |
Twelve Months or More Estimated Fair Value | $ 5,169 | |
Twelve Months or More No. of Issuances | Security | 4 | |
Total Unrealized Losses | $ (22) | $ (185) |
Total Estimated Fair Value | $ 1,469 | $ 5,169 |
Available for sale, Total No. of Issuances | Security | 2 | 4 |
Mortgage-Backed Securities - Government Sponsored Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (5) | $ (12) |
Less than Twelve Months Estimated Fair Value | $ 2,631 | $ 1,640 |
Less than Twelve Months No. of Issuances | Security | 4 | 1 |
Twelve Months or More Unrealized Losses | $ (24) | $ (572) |
Twelve Months or More Estimated Fair Value | $ 3,912 | $ 20,901 |
Twelve Months or More No. of Issuances | Security | 6 | 23 |
Total Unrealized Losses | $ (29) | $ (584) |
Total Estimated Fair Value | $ 6,543 | $ 22,541 |
Available for sale, Total No. of Issuances | Security | 10 | 24 |
Collateralized Mortgage Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (10) | |
Less than Twelve Months Estimated Fair Value | $ 5,738 | |
Less than Twelve Months No. of Issuances | Security | 3 | |
Twelve Months or More Unrealized Losses | $ (15) | $ (631) |
Twelve Months or More Estimated Fair Value | $ 953 | $ 12,065 |
Twelve Months or More No. of Issuances | Security | 2 | 8 |
Total Unrealized Losses | $ (25) | $ (631) |
Total Estimated Fair Value | $ 6,691 | $ 12,065 |
Available for sale, Total No. of Issuances | Security | 5 | 8 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months Unrealized Losses | $ (61) | |
Less than Twelve Months Estimated Fair Value | $ 4,600 | |
Less than Twelve Months No. of Issuances | Security | 4 | |
Twelve Months or More Unrealized Losses | $ (488) | |
Twelve Months or More Estimated Fair Value | $ 6,548 | |
Twelve Months or More No. of Issuances | Security | 4 | |
Total Unrealized Losses | $ (549) | |
Total Estimated Fair Value | $ 11,148 | |
Available for sale, Total No. of Issuances | Security | 8 | |
Municipal Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held to maturity, Less than Twelve Months Unrealized Losses | $ (104) | |
Held to maturity, Less than Twelve Months Estimated Fair Value | $ 2,468 | |
Held to maturity, Less than Twelve Months, No. of Issuances | Security | 6 | |
Held to maturity, Twelve Months or More Unrealized Losses | $ (60) | |
Held to maturity, Twelve Months or More Estimated Fair Value | $ 2,174 | |
Held to maturity, Twelve Months or More, No. of Issuances | Security | 4 | |
Held to maturity, Total Unrealized Losses | $ (164) | |
Held to maturity, Total Estimated Fair Value | $ 4,642 | |
Held to maturity, Total No. of Issuances | Security | 10 |
Loans - Summary of Changes in A
Loans - Summary of Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | |||
Allowance for loan losses, Beginning balance | $ 17,577 | $ 13,773 | $ 14,162 |
Additions (reductions) to the allowance charged to expense | 2,390 | 4,469 | (1,053) |
Recoveries on loans charged-off | 108 | 36 | 747 |
Less loans charged-off | (1,259) | (701) | (83) |
Allowance for loan losses, Ending balance | $ 18,816 | $ 17,577 | $ 13,773 |
Loans - Summary of Recorded Inv
Loans - Summary of Recorded Investment in Loans Impairment Method and Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | |||||||||||
Allowance for loan losses, Beginning balance | $ 17,577 | $ 13,773 | $ 17,577 | $ 13,773 | $ 14,162 | ||||||
Allowance for loan losses, Provisions | $ 659 | $ 824 | $ 357 | 550 | $ 1,890 | $ 1,695 | $ 700 | 184 | 2,390 | 4,469 | (1,053) |
Allowance for loan losses, Charge-offs | (1,259) | (701) | (83) | ||||||||
Allowance for loan losses, Recoveries | 108 | 36 | 747 | ||||||||
Allowance for loan losses, Ending balance | 18,816 | 17,577 | 18,816 | 17,577 | 13,773 | ||||||
Reserves: | |||||||||||
Loan losses, Reserves | 18,816 | 17,577 | 18,816 | 17,577 | 13,773 | ||||||
Loans evaluated for impairment: | |||||||||||
Loans, Individually evaluated for impairment | 13,218 | 3,281 | 13,218 | 3,281 | 2,575 | ||||||
Loans, Collectively evaluated for impairment | 2,183,716 | 2,138,734 | 2,183,716 | 2,138,734 | 1,246,184 | ||||||
Total loans, net of deferred loan fees | 2,196,934 | 2,142,015 | 2,196,934 | 2,142,015 | 1,249,074 | ||||||
Loans acquired | 2,300,000 | 2,300,000 | |||||||||
Loans Acquired with Deteriorated Credit Quality | |||||||||||
Loans evaluated for impairment: | |||||||||||
Loans acquired | 315 | ||||||||||
Specific Reserves | |||||||||||
Reserves: | |||||||||||
Loan losses, Reserves | 44 | 44 | |||||||||
General Reserves | |||||||||||
Reserves: | |||||||||||
Loan losses, Reserves | 18,816 | 17,533 | 18,816 | 17,533 | 13,773 | ||||||
Real Estate | |||||||||||
Allowance for loan losses: | |||||||||||
Allowance for loan losses, Beginning balance | 13,437 | 9,309 | 13,437 | 9,309 | 8,111 | ||||||
Allowance for loan losses, Provisions | 1,847 | 4,128 | 1,198 | ||||||||
Allowance for loan losses, Charge-offs | (166) | ||||||||||
Allowance for loan losses, Ending balance | 15,118 | 13,437 | 15,118 | 13,437 | 9,309 | ||||||
Reserves: | |||||||||||
Loan losses, Reserves | 15,118 | 13,437 | 15,118 | 13,437 | 9,309 | ||||||
Loans evaluated for impairment: | |||||||||||
Loans, Individually evaluated for impairment | 3,795 | 2,309 | 3,795 | 2,309 | 2,420 | ||||||
Loans, Collectively evaluated for impairment | 1,842,747 | 1,750,896 | 1,842,747 | 1,750,896 | 834,152 | ||||||
Total loans, net of deferred loan fees | 1,846,542 | 1,753,205 | 1,846,542 | 1,753,205 | 836,887 | ||||||
Real Estate | Loans Acquired with Deteriorated Credit Quality | |||||||||||
Loans evaluated for impairment: | |||||||||||
Loans acquired | 315 | ||||||||||
Real Estate | General Reserves | |||||||||||
Reserves: | |||||||||||
Loan losses, Reserves | 15,118 | 13,393 | 15,118 | 13,393 | 9,309 | ||||||
Commercial | |||||||||||
Allowance for loan losses: | |||||||||||
Allowance for loan losses, Beginning balance | $ 4,140 | 4,044 | 4,140 | 4,044 | 6,051 | ||||||
Allowance for loan losses, Provisions | 433 | 761 | (2,671) | ||||||||
Allowance for loan losses, Charge-offs | (1,093) | (701) | (83) | ||||||||
Allowance for loan losses, Recoveries | 108 | 36 | 747 | ||||||||
Allowance for loan losses, Ending balance | 3,588 | 4,140 | 3,588 | 4,140 | 4,044 | ||||||
Reserves: | |||||||||||
Loan losses, Reserves | 3,588 | 4,140 | 3,588 | 4,140 | 4,044 | ||||||
Loans evaluated for impairment: | |||||||||||
Loans, Individually evaluated for impairment | 9,423 | 972 | 9,423 | 972 | 155 | ||||||
Loans, Collectively evaluated for impairment | 340,148 | 387,838 | 340,148 | 387,838 | 412,032 | ||||||
Total loans, net of deferred loan fees | 349,571 | 388,810 | 349,571 | 388,810 | 412,187 | ||||||
Commercial | Specific Reserves | |||||||||||
Reserves: | |||||||||||
Loan losses, Reserves | 44 | 44 | |||||||||
Commercial | General Reserves | |||||||||||
Reserves: | |||||||||||
Loan losses, Reserves | 3,588 | $ 4,140 | 3,588 | 4,140 | 4,044 | ||||||
Other | |||||||||||
Allowance for loan losses: | |||||||||||
Allowance for loan losses, Provisions | 9 | ||||||||||
Allowance for loan losses, Ending balance | 9 | 9 | |||||||||
Reserves: | |||||||||||
Loan losses, Reserves | 9 | 9 | |||||||||
Loans evaluated for impairment: | |||||||||||
Loans, Collectively evaluated for impairment | 821 | 821 | |||||||||
Total loans, net of deferred loan fees | 821 | 821 | |||||||||
Other | General Reserves | |||||||||||
Reserves: | |||||||||||
Loan losses, Reserves | 9 | 9 | |||||||||
Unallocated | |||||||||||
Allowance for loan losses: | |||||||||||
Allowance for loan losses, Beginning balance | $ 420 | 420 | |||||||||
Allowance for loan losses, Provisions | 101 | $ (420) | 420 | ||||||||
Allowance for loan losses, Ending balance | 101 | 101 | 420 | ||||||||
Reserves: | |||||||||||
Loan losses, Reserves | 101 | 101 | 420 | ||||||||
Unallocated | General Reserves | |||||||||||
Reserves: | |||||||||||
Loan losses, Reserves | $ 101 | $ 101 | $ 420 |
Loans - Summary of Risk Categor
Loans - Summary of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 2,196,934 | $ 2,142,015 |
Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 96,020 | 113,235 |
Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 793,268 | 758,721 |
Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 957,254 | 881,249 |
Commercial | Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 274,586 | 304,310 |
Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 74,985 | 84,500 |
Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 821 | |
Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,146,181 | 2,111,225 |
Pass | Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 95,756 | 112,959 |
Pass | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 767,603 | 743,123 |
Pass | Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 955,327 | 880,860 |
Pass | Commercial | Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 265,178 | 295,226 |
Pass | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 61,496 | 79,057 |
Pass | Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 821 | |
Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 9,620 | 13,355 |
Special Mention | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,353 | 7,069 |
Special Mention | Commercial | Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,078 | 6,286 |
Special Mention | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 189 | |
Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 27,915 | 14,154 |
Substandard | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 18,115 | 6,496 |
Substandard | Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 593 | 389 |
Substandard | Commercial | Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,330 | 2,798 |
Substandard | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,877 | 4,471 |
Impaired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 13,218 | 3,281 |
Impaired | Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 264 | 276 |
Impaired | Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,197 | 2,033 |
Impaired | Real Estate | Single-family Residential Mortgages | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,334 | |
Impaired | Commercial | SBA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 9,423 | $ 972 |
Loans - Summary of Aging Record
Loans - Summary of Aging Recorded Investment Past-due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 15,830 | $ 5,047 |
Loans Not Past Due | 2,181,104 | 2,136,968 |
Total Loans | 2,196,934 | 2,142,015 |
Non-Accrual Loans | 11,437 | 914 |
30-59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 3,717 | 2,505 |
60-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,560 | 1,628 |
90 Days Or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 10,553 | 914 |
Real Estate | Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 96,020 | 113,235 |
Total Loans | 96,020 | 113,235 |
Real Estate | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 725 | 678 |
Loans Not Past Due | 792,543 | 758,043 |
Total Loans | 793,268 | 758,721 |
Non-Accrual Loans | 725 | |
Real Estate | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 3,464 | 2,498 |
Loans Not Past Due | 953,790 | 878,751 |
Total Loans | 957,254 | 881,249 |
Non-Accrual Loans | 1,334 | |
Real Estate | Single-family residential mortgages held for sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 458 | |
Loans Not Past Due | 108,194 | 434,064 |
Total Loans | 108,194 | 434,522 |
Real Estate | 30-59 Days | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,454 | 1,548 |
Real Estate | 60-89 Days | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 678 | |
Real Estate | 60-89 Days | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,560 | 950 |
Real Estate | 60-89 Days | Single-family residential mortgages held for sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 458 | |
Real Estate | 90 Days Or More | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 725 | |
Real Estate | 90 Days Or More | Single-family Residential Mortgages | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 450 | |
Commercial | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 11,641 | 1,871 |
Loans Not Past Due | 63,344 | 82,629 |
Total Loans | 74,985 | 84,500 |
Non-Accrual Loans | 9,378 | 914 |
Commercial | Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 274,586 | 304,310 |
Total Loans | 274,586 | 304,310 |
Commercial | 30-59 Days | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,263 | 957 |
Commercial | 90 Days Or More | SBA | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 9,378 | $ 914 |
Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 821 | |
Total Loans | $ 821 |
Loans - Summary of Individually
Loans - Summary of Individually Impaired Loans Presented by Class of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance | $ 13,234 | $ 3,281 | $ 2,575 |
Recorded Investment | 13,218 | 3,982 | 2,575 |
Average Balance | 14,797 | 3,979 | 2,566 |
Interest Income | 128 | 177 | 328 |
Construction and Land Development | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 264 | 276 | 289 |
Recorded Investment, With no related allowance recorded | 264 | 276 | 289 |
Average Balance, With no related allowance recorded | 271 | 283 | 296 |
Interest Income, With no related allowance recorded | 24 | 23 | 16 |
Commercial Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 2,198 | 2,033 | 2,131 |
Recorded Investment, With no related allowance recorded | 2,197 | 2,033 | 2,131 |
Average Balance, With no related allowance recorded | 2,384 | 2,126 | 2,192 |
Interest Income, With no related allowance recorded | 100 | 134 | 297 |
Residential mortgage loans | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 1,349 | ||
Recorded Investment, With no related allowance recorded | 1,334 | ||
Average Balance, With no related allowance recorded | 1,351 | ||
Commercial | SBA | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance, With no related allowance recorded | 9,423 | 797 | 155 |
Recorded Investment, With no related allowance recorded | 9,423 | 1,498 | 155 |
Average Balance, With no related allowance recorded | 10,791 | 1,377 | 78 |
Interest Income, With no related allowance recorded | 4 | 19 | $ 15 |
Unpaid Principal Balance, With related allowance recorded | 0 | 175 | |
Recorded Investment, With related allowance recorded | 0 | 175 | |
Average Balance, With related allowance recorded | 0 | 193 | |
Interest Income, With related allowance recorded | 0 | 1 | |
Related Allowance, With related allowance recorded | $ 0 | $ 44 |
Loans - Additional Information
Loans - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($) | |
Financing Receivable Recorded Investment [Line Items] | |||
Interest income recognized on cash basis | $ 0 | $ 0 | $ 0 |
Interest income on nonaccrual loans | 0 | 0 | |
Troubled debt restructurings interest income | $ 128,000 | $ 177,000 | |
Number of loans identified as troubled debt restructurings | Loan | 4 | 4 | |
Reserve for loans | $ 18,816,000 | $ 17,577,000 | $ 13,773,000 |
Commitments to lend an additional amounts of outstanding loans are classified as TDR's | $ 0 | $ 0 | |
Number of loans defaulted | Loan | 0 | 0 | |
Outstanding balance of purchased credit-impaired loan | $ 0 | $ 0 | |
Minimum | |||
Financing Receivable Recorded Investment [Line Items] | |||
Moratorium on loan payments period granted | 3 months | ||
Maximum | |||
Financing Receivable Recorded Investment [Line Items] | |||
Moratorium on loan payments period granted | 6 months | ||
Specific Reserves | |||
Financing Receivable Recorded Investment [Line Items] | |||
Reserve for loans | 44,000 | ||
One Loan | Specific Reserves | |||
Financing Receivable Recorded Investment [Line Items] | |||
Reserve for loans | $ 0 | $ 0 |
Loans - Summary of Loans by Cla
Loans - Summary of Loans by Class Modified as TDRs (Details) - Commercial Real Estate $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)Loan | |
Financing Receivable Recorded Investment [Line Items] | |
Number of Loans | Loan | 1 |
Pre-Modification Recorded Investment | $ 476 |
Post-Modification Recorded Investment | $ 476 |
Loans - Summary of Activity in
Loans - Summary of Activity in Accretable Yield on Purchased Credit-impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Beginning balance | $ 7 | $ 142 |
Accretion of income | $ (7) | (135) |
Ending balance | $ 7 |
Loan Servicing - Schedule of Pr
Loan Servicing - Schedule of Principal Balances of Mortgage and SBA Loans Serviced for Others (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Mortgage Loans | ||
Schedule Of Mortgage And Small Business Administration Loans Serviced [Line Items] | ||
Loans serviced for others | $ 1,683,298 | $ 1,586,499 |
SBA Loans | ||
Schedule Of Mortgage And Small Business Administration Loans Serviced [Line Items] | ||
Loans serviced for others | 170,849 | 184,664 |
Commercial Real Estate Loans | ||
Schedule Of Mortgage And Small Business Administration Loans Serviced [Line Items] | ||
Loans serviced for others | $ 4,216 | $ 2,838 |
Loan Servicing - Schedule of Ac
Loan Servicing - Schedule of Activity for Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans | |||
Servicing assets: | |||
Beginning of period | $ 12,858 | $ 1,540 | $ 1,002 |
Acquisitions | 10,651 | ||
Additions | 2,088 | 1,562 | 1,115 |
Disposals | (128) | (197) | (172) |
Amortized to expense | (1,821) | (698) | (405) |
End of period | 12,997 | 12,858 | 1,540 |
SBA Loans | |||
Servicing assets: | |||
Beginning of period | 4,512 | 4,417 | 2,702 |
Additions | 980 | 1,932 | 2,628 |
Disposals | (708) | (1,177) | (367) |
Amortized to expense | (698) | (660) | (546) |
End of period | $ 4,086 | $ 4,512 | $ 4,417 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Servicing assets | $ 17,083 | $ 17,370 | |
Servicing fees net of servicing asset amortization | 3,383 | 850 | $ 722 |
Mortgage Loans | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Servicing assets | $ 15,100 | $ 15,300 | |
Mortgage Loans | Fair Value Discount Rate | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Fair value of servicing assets percentage | 10.82 | 10.59 | |
Mortgage Loans | Fair Value Prepayment Rate | Minimum | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Fair value of servicing assets percentage | 7.27 | 8.26 | |
Mortgage Loans | Fair Value Prepayment Rate | Maximum | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Fair value of servicing assets percentage | 20.15 | 16.82 | |
Mortgage Loans | Fair Value Weighted Average Default Rate | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Fair value of servicing assets percentage | 0.11 | 0.20 | |
SBA Loans | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Servicing assets | $ 5,600 | $ 6,100 | |
SBA Loans | Fair Value Discount Rate | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Fair value of servicing assets percentage | 8.50 | 8.50 | |
SBA Loans | Fair Value Prepayment Rate | Minimum | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Fair value of servicing assets percentage | 12.50 | 11.43 | |
SBA Loans | Fair Value Prepayment Rate | Maximum | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Fair value of servicing assets percentage | 14.66 | 12.11 | |
SBA Loans | Fair Value Weighted Average Default Rate | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Fair value of servicing assets percentage | 0.43 | 0.52 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 24,684 | $ 22,521 |
Less accumulated depreciation and amortization | (8,102) | (6,312) |
Construction in progress | 231 | 1,098 |
Premises and equipment | 16,813 | 17,307 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 5,020 | 5,020 |
Building and Improvements | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 7,822 | 7,823 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 5,590 | 4,845 |
Furnitures, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 6,252 | $ 4,833 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and leasehold amortization expense | $ 1,800,000 | $ 989,000 | $ 686,000 | |
Operating leases expire at various dates through year | 2028 | |||
Total rental expense, recognized on straight-line basis | $ 6,100,000 | $ 2,700,000 | $ 1,500,000 | |
Operating lease expiration date | 2018-05 | |||
Sub-lease income | $ 197,000 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Future Minimum Rent Payments on Company's Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 5,603 |
2021 | 4,634 |
2022 | 4,192 |
2023 | 3,250 |
2024 | 2,209 |
Thereafter | 8,998 |
Total | $ 28,886 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Maturities Of Time Deposits [Abstract] | |
One year | $ 1,215,913 |
Two to three years | 34,863 |
Over three years | 1,909 |
Total | $ 1,252,685 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities Of Time Deposits [Abstract] | ||
Brokered time deposits | $ 67.1 | $ 113.8 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instruments [Abstract] | ||
Principal | $ 105,000,000 | $ 105,000,000 |
Unamortized debt issuance costs | $ 951,000 | $ 1,292,000 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Mar. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 105,000,000 | $ 105,000,000 | ||
6.5% Fixed to Floating Rate Subordinated Debentures, Due March 31, 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 50,000,000 | |||
Long-term debt, fixed interest rate | 6.50% | |||
Debt instrument, due date | Mar. 31, 2026 | |||
Debt instrument, fixed to floating interest rate conversion date | Mar. 31, 2021 | |||
Debt instrument, floating rate description | 3 month LIBOR plus 516 basis points | |||
Debt instrument, basis points | 5.16% | |||
Tier-1 capital | $ 35,000,000 | |||
Debt instrument, redemption period, start date | Mar. 31, 2021 | |||
6.18% Fixed to Floating Rate Subordinated Debentures, Due December 1, 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 55,000,000 | |||
Long-term debt, fixed interest rate | 6.18% | |||
Debt instrument, due date | Dec. 1, 2028 | |||
Debt instrument, fixed to floating interest rate conversion date | Dec. 1, 2023 | |||
Debt instrument, floating rate description | 3 month LIBOR plus 315 basis points | |||
Debt instrument, basis points | 3.15% | |||
Tier-1 capital | $ 25,000,000 | |||
Debt instrument, redemption period, start date | Dec. 1, 2023 |
Long-term Debt - Schedule of In
Long-term Debt - Schedule of Interest and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Expense: | ||
Interest | $ 6,649 | $ 3,552 |
Amortization | $ 342 | $ 162 |
Subordinated Debentures - Addit
Subordinated Debentures - Additional Information (Details) - USD ($) | Feb. 19, 2016 | Mar. 15, 2012 | Oct. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 105,000,000 | $ 105,000,000 | ||||
Interest expenses, paid | 6,649,000 | 3,552,000 | ||||
Debt aggregate amortization expense | $ 167,000 | $ 106,000 | $ 90,000 | |||
Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of principal amount redeemed | 100.00% | |||||
Debt instrument redemption period | Mar. 15, 2012 | |||||
Debt instrument maturity period | Mar. 15, 2037 | |||||
Defer interest payments maximum period | 5 years | |||||
Debt instrument interest rate description | three month London Interbank Offered Rate (LIBOR) plus 1.65%, which was 3.54% as of December 31, 2019 and 4.66% at December 31, 2018. | |||||
Debt instrument interest percentage | 3.54% | 4.66% | ||||
Interest expenses, paid | $ 540,000 | $ 263,000 | $ 144,000 | |||
TFC Statutory Trust | Private Offering | ||||||
Debt Instrument [Line Items] | ||||||
Number of trust preferred securities | 5,000 | |||||
Trust preferred securities liquidation amount per preferred security | $ 1,000 | |||||
TFC Statutory Trust | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 5,000,000 | |||||
Debt valuation reserve | 1,900,000 | |||||
TFC Statutory Trust | Fair Value, Inputs, Level 1 | ||||||
Debt Instrument [Line Items] | ||||||
Subordinated debenture liability | $ 3,300,000 | |||||
First American International Statutory Trust I | ||||||
Debt Instrument [Line Items] | ||||||
Number of units issued | 7,000 | |||||
Aggregate liquidation amount of units issued | $ 7,000,000 | |||||
Floating rate maturity period | 30 years | |||||
First American International Statutory Trust I | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 7,000,000 | |||||
Debt valuation reserve | $ 1,200,000 | |||||
Debt instrument maturity period | Dec. 15, 2034 | |||||
Defer interest payments maximum period | 5 years | |||||
Debt instrument interest rate description | the three-month LIBOR plus 2.25% through final maturity on December 15, 2034. The rate at December 31, 2019, was 4.14% and 5.04% at December 31, 2018. | |||||
Debt instrument interest percentage | 4.14% | 5.04% | ||||
Other Assets | ||||||
Debt Instrument [Line Items] | ||||||
Investment in common stock | $ 155,000 | |||||
Other Assets | First American International Statutory Trust I | ||||||
Debt Instrument [Line Items] | ||||||
Investment in common stock | $ 217,000 | |||||
London Interbank Offered Rate | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis points | 1.65% | |||||
London Interbank Offered Rate | First American International Statutory Trust I | Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis points | 2.25% |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Line of credit amount outstanding | $ 0 | $ 0 |
Overnight advances with FHLB | 0 | $ 319,500,000 |
FRB Secured Line of Credit | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 14,300,000 | |
Carrying value of collateral loan pledged | 28,700,000 | |
FHLB Secured Line of Credit | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 636,500,000 | |
Carrying value of collateral loan pledged | 727,800,000 | |
FHLB | ||
Debt Instrument [Line Items] | ||
Overnight advances interest percentage | 2.56% | |
Zions Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 20,000,000 | |
Wells Fargo Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 10,000,000 | |
Wells Fargo Bank | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 2,000,000 | |
First Tennessee National Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 12,000,000 | |
Pacific Coast Bankers' Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | $ 5,000,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 8,074 | $ 6,616 | $ 12,097 | ||||||||
State | 5,614 | 3,451 | 3,773 | ||||||||
Current | 13,688 | 10,067 | 15,870 | ||||||||
Deferred | 1,503 | (131) | 2,492 | ||||||||
Deferred tax adjustment for change in tax rate | 21 | (479) | 2,591 | ||||||||
Amortization of investment in affordable housing tax credits | 900 | 644 | 316 | ||||||||
Income tax expense | $ 4,149 | $ 3,689 | $ 4,415 | $ 3,859 | $ 4,188 | $ 2,041 | $ 2,292 | $ 1,580 | $ 16,112 | $ 10,101 | $ 21,269 |
Income Taxes - Comparison of Fe
Income Taxes - Comparison of Federal Statutory Income Tax Rates to Effective Income Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||||||||||
Statutory federal tax | $ 11,617 | $ 9,703 | $ 16,379 | ||||||||
State franchise tax, net of federal benefit | 5,322 | 3,488 | 3,135 | ||||||||
Tax-exempt income | (25) | (27) | (297) | ||||||||
Tax impact from change in tax rate | 17 | (479) | 2,591 | ||||||||
Stock-based compensation | (27) | (2,643) | |||||||||
Other items, net | (792) | 59 | (539) | ||||||||
Income tax expense | $ 4,149 | $ 3,689 | $ 4,415 | $ 3,859 | $ 4,188 | $ 2,041 | $ 2,292 | $ 1,580 | $ 16,112 | $ 10,101 | $ 21,269 |
Rate | |||||||||||
Statutory federal tax | 21.00% | 21.00% | 35.00% | ||||||||
State franchise tax, net of federal benefit | 9.60% | 7.50% | 6.70% | ||||||||
Tax-exempt income | (0.00%) | (0.10%) | (0.60%) | ||||||||
Tax impact from change in tax rate | 0.00% | (1.00%) | 5.50% | ||||||||
Stock-based compensation | 0.00% | (5.70%) | 0.00% | ||||||||
Other items, net | (1.40%) | 0.10% | (1.20%) | ||||||||
Actual tax expense | 29.20% | 21.80% | 45.40% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Pre-opening expenses | $ 122 | $ 154 |
Allowance for loan losses | 5,883 | 5,545 |
Stock-based compensation | 1,346 | 1,419 |
Off balance sheet reserve | 258 | 217 |
Operating loss carryforwards | 1,253 | 1,688 |
Other real estate owned | 37 | 10 |
Unrealized loss on AFS securities | 600 | |
Mark to market on held for sale mortgage loans | 359 | 2,451 |
Other | 1,594 | 1,220 |
Deferred tax assets | 10,852 | 13,304 |
Deferred tax liabilities: | ||
Depreciation | (282) | (521) |
Unrealized gain on AFS securities | (106) | |
Acquisition accounting fair value adjustments | (2,671) | (2,067) |
Mortgage servicing rights | (3,745) | (3,586) |
Other | (1,722) | (2,488) |
Deferred tax liabilities | (8,526) | (8,662) |
Net deferred tax assets | $ 2,326 | $ 4,642 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
Net operating loss carry forwards expiration, description | begin to expire in 2028 | ||
Net operating loss carry forwards expiration year start | 2028 | ||
Income tax return examination, description | Income tax returns for the years ended after December 31, 2015 are open to audit by the federal and New York authorities and for the years ended after December 31, 2014 are open to audit by California state authorities. | ||
Interest or penalties related to uncertain tax positions | $ 0 | $ 0 | $ 0 |
Adjustment to uncertain tax position | 0 | ||
California Tax | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | 0 | ||
Net operating loss carryforwards, subject to 382 limitations | 11,400,000 | ||
New York State Income Tax | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | 9,600,000 | ||
Net operating loss carryforwards, subject to 382 limitations | 12,300,000 | ||
New York City Income Tax | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | 8,800,000 | ||
Net operating loss carryforwards, subject to 382 limitations | 9,300,000 | ||
Federal | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | 32,000 | ||
Net operating loss carryforwards, subject to 382 limitations | $ 3,800,000 |
Commitments - Schedule of Finan
Commitments - Schedule of Financial Commitments whose Contractual Amount Represents Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount, Fixed Rate | $ 58,274 | $ 70,145 |
Financial commitments, contractual amount, Variable Rate | 271,925 | 202,191 |
Commitments to Make Loans | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount, Fixed Rate | 5,211 | |
Financial commitments, contractual amount, Variable Rate | 167,496 | 125,610 |
Unused Lines of Credit | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount, Fixed Rate | 55,789 | 61,191 |
Financial commitments, contractual amount, Variable Rate | 102,841 | 75,908 |
Commercial and Similar Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount, Fixed Rate | 1,042 | |
Financial commitments, contractual amount, Variable Rate | 358 | |
Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Financial commitments, contractual amount, Fixed Rate | 2,485 | 2,701 |
Financial commitments, contractual amount, Variable Rate | $ 1,230 | $ 673 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Beginning balance | $ 3,600 | $ 2,300 |
New loans and advances | 16,180 | 7,400 |
Repayments | (15,780) | (6,100) |
Ending balance | $ 4,000 | $ 3,600 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Executive Officers, Directors and their Related Interests | ||
Related Party Transaction [Line Items] | ||
Loan commitments outstanding to related parties | $ 0 | $ 800,000 |
Principal Officers, Directors and their Affiliates | ||
Related Party Transaction [Line Items] | ||
Deposits from related parties | $ 84,600,000 | $ 52,100,000 |
Stock Option Plan - Additional
Stock Option Plan - Additional Information (Details) - USD ($) | Aug. 15, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 689,000 | $ 684,000 | $ 779,000 | |
Income tax benefits recognized | 161,000 | $ 202,000 | $ 246,000 | |
Unamortized restricted stock compensation | $ 691,000 | |||
Stock options granted | 76,500 | 0 | 0 | |
Total unrecognized compensation cost | $ 332,000 | |||
Unrecognized compensation costs, weighted-average recognition period | 2 years | |||
Option exercised of intrinsic value | $ 1,200,000 | $ 13,600,000 | $ 2,800,000 | |
Total fair of share vested | $ 460,000 | $ 734,000 | $ 930,000 | |
Number of nonvested stock options | 76,500 | 62,008 | 163,996 | |
Weighted average grant date fair value, nonvested stock options | $ 6.32 | $ 6.48 | $ 6.53 | |
Stock options exercised, shares | 200,629 | |||
Stock options exercised | $ 2,817,000 | $ 9,629,000 | $ 2,296,000 | |
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Number of units granted | 43,425 | 0 | 0 | |
Closing price of units granted | $ 29.38 | |||
Number of units vested | 14,475 | |||
Number of remaining unvested units | 28,950 | |||
Weighted average grant price | $ 29.38 | |||
Intrinsic value of vested stock | $ 262,000 | |||
2017 Omnibus Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option expiration period from date of grant | 10 years | |||
Vesting period | 3 years | |||
Number of shares available for future grant | 1,254,045 | |||
Maximum | 2017 Omnibus Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of option to purchase number of outstanding common stock | 30.00% | |||
Percentage of fair market value stock on date of the grant | 100.00% |
Stock Option Plan - Schedule of
Stock Option Plan - Schedule of Weighted Average Assumption for Fair Value of Option Grant Estimated Using Black-Scholes Option Pricing Model (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected volatility | 35.00% | 35.00% |
Expected term | 6 years | 6 years |
Expected dividends | 1.90% | 0.00% |
Risk free rate | 2.66% | 1.93% |
Grant date fair value | $ 6.32 | $ 6.76 |
Stock Option Plan - Summary of
Stock Option Plan - Summary of Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Beginning Balance, Shares | 1,215,097 | ||
Granted, Shares | 76,500 | 0 | 0 |
Exercised, Shares | (200,629) | ||
Ending Balance, Shares | 1,090,968 | 1,215,097 | |
Options exercisable, Shares | 1,014,468 | ||
Beginning Balance, Weighted Average Exercise Price | $ 12.83 | ||
Granted, Weighted Average Exercise Price | 18.38 | ||
Exercised, Weighted Average Exercise Price | 13.43 | ||
Ending Balance, Weighted Average Exercise Price | 13.11 | $ 12.83 | |
Options exercisable, Weighted Average Exercise Price | $ 12.72 | ||
Ending Balance, Weighted Average Remaining Contractual Term | 4 years 25 days | ||
Options exercisable, Weighted Average Remaining Contractual Term | 3 years 8 months 8 days | ||
Ending Balance, Aggregate Intrinsic Value | $ 8,790 | ||
Options exercisable, Aggregate Intrinsic Value | $ 8,577 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) - USD ($) | Jan. 01, 2019 | Jan. 02, 2018 | Jan. 01, 2017 | Jan. 02, 2016 | Dec. 31, 2019 | Dec. 31, 2015 | Jan. 01, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Common equity Tier 1 capital to risk-weighted assets ratio with minimum for capital adequacy | 4.50% | ||||||
Common equity Tier 1 capital to risk-weighted assets ratio with minimum for prompt corrective action purposes | 6.50% | ||||||
Tier 1 capital to risk-weighted assets ratio with minimum for capital adequacy | 4.00% | ||||||
Increased Tier 1 capital to risk-weighted assets ratio with minimum for capital adequacy | 6.00% | ||||||
Tier 1 capital to risk-weighted assets ratio with minimum for prompt corrective action purposes | 6.00% | ||||||
Increased Tier 1 capital to risk-weighted assets ratio with minimum for prompt corrective action purposes | 8.00% | ||||||
Capital conservation buffer | 2.50% | 2.50% | |||||
Capital conservation buffer annual increase percentage | 0.625% | 0.625% | 0.625% | 0.625% | |||
Capital conservation buffer phased-in on pro rata basis period | 4 years | ||||||
Capital conservation buffer phased | 2.50% | 0.00% | |||||
Minimum | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Regulatory assets | $ 3,000,000,000 | ||||||
Required assets to liabilities ratio after dividend effect | 125.00% |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Actual Capital Amounts and Ratios and Related Regulatory Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | ||
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions, Ratio | 6.00% | ||
RBB Bancorp | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Leverage Ratio, Amount | $ 353,572 | $ 321,407 | |
Tier 1 Leverage Ratio, Ratio | 12.89% | 11.80% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Amount | $ 343,899 | $ 311,901 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Ratio | 17.16% | 15.28% | |
Tier 1 Risk-Based Capital Ratio, Amount | $ 353,572 | $ 321,407 | |
Tier 1 Risk-Based Capital Ratio, Ratio | 17.65% | 15.74% | |
Total Risk-Based Capital Ratio, Amount | $ 477,262 | $ 443,379 | |
Total Risk-Based Capital Ratio, Ratio | 23.82% | 21.71% | |
Royal Business Bank | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Leverage Ratio, Amount | $ 417,036 | $ 370,304 | |
Tier 1 Leverage Ratio, Ratio | 15.23% | 13.66% | |
Tier 1 Leverage Ratio, Minimum Required for Capital Adequacy Purposes, Amount | $ 108,150 | $ 108,445 | |
Tier 1 Leverage Ratio, Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Tier 1 Leverage Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions, Amount | $ 135,187 | $ 135,556 | |
Tier 1 Leverage Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions, Ratio | 5.00% | 5.00% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Amount | $ 417,036 | $ 370,304 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Ratio | 20.87% | 18.17% | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes, Amount | $ 89,127 | $ 91,722 | |
Common Equity Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | |
Common Equity Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions, Amount | $ 128,739 | $ 132,487 | |
Common Equity Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions, Ratio | 6.50% | 6.50% | |
Tier 1 Risk-Based Capital Ratio, Amount | $ 417,036 | $ 370,304 | |
Tier 1 Risk-Based Capital Ratio, Ratio | 20.87% | 18.17% | |
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes, Amount | $ 118,836 | $ 122,296 | |
Tier 1 Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | |
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions, Amount | $ 158,448 | $ 163,061 | |
Tier 1 Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions, Ratio | 8.00% | 8.00% | |
Total Risk-Based Capital Ratio, Amount | $ 436,677 | $ 388,569 | |
Total Risk-Based Capital Ratio, Ratio | 21.86% | 19.07% | |
Total Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes, Amount | $ 158,448 | $ 163,061 | |
Total Risk-Based Capital Ratio, Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | |
Total Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions, Amount | $ 198,061 | $ 203,826 | |
Total Risk-Based Capital Ratio, To Be Well-Capitalized Under Prompt Corrective Provisions, Ratio | 10.00% | 10.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Hierarchy and Fair Value for Each Major Category of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurements, Recurring Basis | ||
Assets measured at fair value: | ||
Assets measured at fair value | $ 126,069 | $ 73,762 |
Fair Value Measurements, Recurring Basis | Government Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 1,572 | 1,815 |
Fair Value Measurements, Recurring Basis | SBA Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 4,691 | 5,169 |
Fair Value Measurements, Recurring Basis | Mortgage-Backed Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 19,171 | 22,541 |
Fair Value Measurements, Recurring Basis | Collateralized Mortgage Obligations | ||
Assets measured at fair value: | ||
Assets measured at fair value | 11,654 | 12,066 |
Fair Value Measurements, Recurring Basis | Commercial Paper | ||
Assets measured at fair value: | ||
Assets measured at fair value | 69,898 | 14,918 |
Fair Value Measurements, Recurring Basis | Corporate Debt Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 19,083 | 17,253 |
Fair Value Measurements, Nonrecurring Basis | ||
Assets measured at fair value: | ||
Assets measured at fair value | 293 | 1,224 |
Fair Value Measurements, Nonrecurring Basis | Commercial Real Estate | Collateral Dependent Impaired Loans | ||
Assets measured at fair value: | ||
Assets measured at fair value | 123 | |
Fair Value Measurements, Nonrecurring Basis | Other Real Estate Owned | ||
Assets measured at fair value: | ||
Assets measured at fair value | 293 | 1,101 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | ||
Assets measured at fair value: | ||
Assets measured at fair value | 126,069 | 73,762 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Government Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 1,572 | 1,815 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | SBA Agency Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 4,691 | 5,169 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Mortgage-Backed Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 19,171 | 22,541 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Collateralized Mortgage Obligations | ||
Assets measured at fair value: | ||
Assets measured at fair value | 11,654 | 12,066 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Commercial Paper | ||
Assets measured at fair value: | ||
Assets measured at fair value | 69,898 | 14,918 |
Fair Value Measurements Using Level 2 | Fair Value Measurements, Recurring Basis | Corporate Debt Securities | ||
Assets measured at fair value: | ||
Assets measured at fair value | 19,083 | 17,253 |
Fair Value Measurements Using Level 3 | Fair Value Measurements, Nonrecurring Basis | ||
Assets measured at fair value: | ||
Assets measured at fair value | 293 | 1,224 |
Fair Value Measurements Using Level 3 | Fair Value Measurements, Nonrecurring Basis | Commercial Real Estate | Collateral Dependent Impaired Loans | ||
Assets measured at fair value: | ||
Assets measured at fair value | 123 | |
Fair Value Measurements Using Level 3 | Fair Value Measurements, Nonrecurring Basis | Other Real Estate Owned | ||
Assets measured at fair value: | ||
Assets measured at fair value | $ 293 | $ 1,101 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Write-downs to OREO | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Quantitative Information About Non-recurring Level 3 Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurements, Nonrecurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 293 | $ 1,224 |
Fair Value Measurements, Nonrecurring Basis | Other Real Estate Owned | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 293 | 1,101 |
Fair Value Measurements Using Level 3 | Fair Value Measurements, Nonrecurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 293 | 1,224 |
Fair Value Measurements Using Level 3 | Fair Value Measurements, Nonrecurring Basis | Other Real Estate Owned | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 293 | $ 1,101 |
Fair Value Measurements Using Level 3 | Third Party Appraisals | Other Real Estate Owned | Measurement Input, Comparability Adjustment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value Adjustment | 29 | 16 |
Fair Value Measurements Using Level 3 | Third Party Appraisals | Other Real Estate Owned | Measurement Input, Comparability Adjustment | Weighted Average | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value Adjustment | 29 | 16 |
Fair Value Measurements Using Level 3 | Third Party Appraisals | Fair Value Measurements, Nonrecurring Basis | Other Real Estate Owned | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 293 | $ 1,101 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value Hierarchy Level and Estimated Fair Value of Significant Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Investment securities - AFS | $ 126,069 | $ 73,762 |
Investment securities - HTM | 8,632 | 9,940 |
Carrying Value | ||
Financial Assets: | ||
Cash and due from banks | 114,763 | 147,685 |
Federal funds sold and other cash equivalents | 67,000 | |
Interest-earning deposits in other financial institutions | 600 | 600 |
Investment securities - AFS | 126,069 | 73,762 |
Investment securities - HTM | 8,332 | 9,961 |
Mortgage loans held for sale | 108,194 | 434,522 |
Loans, net | 2,178,118 | 2,124,438 |
Equity securities | 11,826 | 10,039 |
Mortgage servicing rights | 17,083 | 17,370 |
Financial Liabilities: | ||
Deposits | 2,248,938 | 2,144,041 |
FHLB advances | 319,500 | |
Long-term debt | 104,049 | 103,708 |
Subordinated debenture liability | 9,673 | 9,506 |
Fair Value | Fair Value, Inputs, Level 1 | ||
Financial Assets: | ||
Cash and due from banks | 114,763 | 147,685 |
Federal funds sold and other cash equivalents | 67,000 | |
Interest-earning deposits in other financial institutions | 600 | 600 |
Mortgage loans held for sale | 109,385 | 438,948 |
Fair Value | Fair Value Measurements Using Level 2 | ||
Financial Assets: | ||
Investment securities - AFS | 126,069 | 73,762 |
Investment securities - HTM | 8,632 | 9,940 |
Mortgage servicing rights | 20,752 | 21,361 |
Financial Liabilities: | ||
Deposits | 2,236,329 | 2,143,196 |
FHLB advances | 319,500 | |
Long-term debt | 109,877 | 79,756 |
Fair Value | Fair Value Measurements Using Level 3 | ||
Financial Assets: | ||
Loans, net | 2,158,970 | 2,114,341 |
Equity securities | 11,826 | 10,039 |
Financial Liabilities: | ||
Subordinated debenture liability | $ 11,709 | $ 10,356 |
Earnings Per Share ("EPS") - Co
Earnings Per Share ("EPS") - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income as reported | $ 10,675 | $ 8,012 | $ 10,142 | $ 10,380 | $ 9,490 | $ 8,331 | $ 9,437 | $ 8,847 | $ 39,209 | $ 36,105 | $ 25,528 |
Less: Earnings allocated to Participating Securities | $ (74) | ||||||||||
Shares outstanding | 20,030,866 | 20,000,022 | 15,908,893 | ||||||||
Impact of weighting shares | (13,560) | (2,848,800) | (1,830,612) | ||||||||
Used in basic EPS, Income | $ 39,135 | $ 36,105 | $ 25,528 | ||||||||
Used in basic EPS, Shares | 20,017,306 | 17,151,222 | 14,078,281 | ||||||||
Dilutive effect of outstanding | |||||||||||
Stock options, Shares | 376,118 | 816,431 | 1,160,084 | ||||||||
Used in dilutive EPS, Income | $ 39,135 | $ 36,105 | $ 25,528 | ||||||||
Used in dilutive EPS, Shares | 20,393,424 | 17,967,653 | 15,238,365 | ||||||||
Basic earnings per common share | $ 0.53 | $ 0.40 | $ 0.51 | $ 0.52 | $ 0.48 | $ 0.50 | $ 0.58 | $ 0.55 | $ 1.96 | $ 2.11 | $ 1.81 |
Diluted earnings per common share | $ 0.52 | $ 0.39 | $ 0.50 | $ 0.51 | $ 0.47 | $ 0.48 | $ 0.54 | $ 0.52 | $ 1.92 | $ 2.01 | $ 1.68 |
Earnings Per Share ("EPS") - Ad
Earnings Per Share ("EPS") - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options | Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Excluded common stock for computation of diluted earnings per share | 76,500 | 399,000 | 0 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Additional Information (Details) | Jan. 01, 2019USD ($) |
ASU 2014-09 | |
Disaggregation Of Revenue [Line Items] | |
Cumulative effect adjustment to retained earnings | $ 0 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Summary of Revenue From Contracts With Customers in-Scope and Not in-Scope under Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Total in-scope non-interest income | $ 3,813 | $ 2,547 | $ 1,952 | ||||||||
Non-interest income, not in scope | 14,507 | 10,295 | 11,249 | ||||||||
Total noninterest income | $ 5,823 | $ 2,799 | $ 5,496 | $ 4,202 | $ 5,489 | $ 2,105 | $ 2,793 | $ 2,455 | 18,320 | 12,842 | 13,201 |
Fees and Service Charges on Deposit Accounts | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total in-scope non-interest income | 1,366 | 1,115 | 1,164 | ||||||||
Other Fees | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total in-scope non-interest income | 1,118 | 723 | 145 | ||||||||
Other Income | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total in-scope non-interest income | 1,429 | $ 709 | 501 | ||||||||
(Loss) Gain on Sale of OREO and Fixed Assets | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total in-scope non-interest income | $ (100) | $ 142 |
Qualified Affordable Housing _2
Qualified Affordable Housing Project Investments - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Equity Method Investments [Line Items] | |||
Investment for qualified affordable housing projects | $ 8,600,000 | $ 9,500,000 | |
Unfunded commitments related to the investments in qualified affordable housing projects | 4,200,000 | 6,800,000 | |
Amortization expense | 900,000 | 644,000 | $ 316,000 |
Recognized tax credits from its investment in affordable housing tax credits | 1,100,000 | 573,000 | 275,000 |
Impairment losses | $ 0 | $ 0 | $ 0 |
Minimum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Expected year in which commitments are fulfilled | 2020 | ||
Maximum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Expected year in which commitments are fulfilled | 2027 |
Parent Only Condensed Financi_3
Parent Only Condensed Financial Information - Schedule of Parent Only Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | $ 114,763 | $ 147,685 | ||
Total assets | 2,788,535 | 2,974,002 | ||
Liabilities and Shareholders’ Equity | ||||
Reserve for unfunded commitments | 826 | 688 | ||
Long term debt | 104,049 | 103,708 | ||
Accrued interest and other liabilities | 17,359 | 21,938 | ||
Total liabilities | 2,380,845 | 2,599,381 | ||
Shareholders' equity: | ||||
Common stock | 290,395 | 288,610 | ||
Additional paid-in capital | 4,938 | 5,659 | ||
Retained earnings | 112,046 | 81,618 | ||
Non-controlling interest | 72 | 72 | ||
Accumulated other comprehensive income (loss) | 239 | (1,338) | ||
Total shareholders’ equity | 407,690 | 374,621 | $ 265,176 | $ 181,585 |
Total liabilities and shareholders’ equity | 2,788,535 | 2,974,002 | ||
RBB Bancorp | ||||
Assets | ||||
Cash and cash equivalents | 29,985 | 45,540 | ||
Other assets | 4,202 | 2,820 | ||
Total assets | 521,760 | 488,179 | ||
Liabilities and Shareholders’ Equity | ||||
Long term debt | 104,049 | 103,708 | ||
Subordinated debentures | 9,673 | 9,506 | ||
Other liabilities | 348 | 344 | ||
Total liabilities | 114,070 | 113,558 | ||
Shareholders' equity: | ||||
Common stock | 290,395 | 288,610 | ||
Additional paid-in capital | 4,938 | 5,659 | ||
Retained earnings | 112,046 | 81,618 | ||
Non-controlling interest | 72 | 72 | ||
Accumulated other comprehensive income (loss) | 239 | (1,338) | ||
Total shareholders’ equity | 407,690 | 374,621 | ||
Total liabilities and shareholders’ equity | 521,760 | 488,179 | ||
RBB Bancorp | Royal Business Bank | ||||
Assets | ||||
Investment | 480,703 | 433,023 | ||
RBB Bancorp | Royal Asset Management | ||||
Assets | ||||
Investment | $ 6,870 | $ 6,796 |
Parent Only Condensed Financi_4
Parent Only Condensed Financial Information - Schedule of Parent Only Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Income and Comprehensive Income | |||||||||||
Interest income | $ 33,907 | $ 34,669 | $ 35,943 | $ 37,206 | $ 35,181 | $ 24,473 | $ 22,284 | $ 20,177 | $ 141,725 | $ 102,115 | $ 74,104 |
Interest expense | 10,784 | 11,157 | 11,626 | 11,294 | 9,599 | 5,857 | 4,457 | 3,732 | 44,861 | 23,645 | 13,938 |
Noninterest expense | 13,463 | 13,786 | 14,899 | 15,325 | 15,503 | 8,654 | 8,191 | 8,289 | 57,473 | 40,637 | 27,623 |
Income before income taxes | 14,824 | 11,701 | 14,557 | 14,239 | 13,678 | 10,372 | 11,729 | 10,427 | 55,321 | 46,206 | 46,797 |
Income tax benefit | (4,149) | (3,689) | (4,415) | (3,859) | (4,188) | (2,041) | (2,292) | (1,580) | (16,112) | (10,101) | (21,269) |
Net income | $ 10,675 | $ 8,012 | $ 10,142 | $ 10,380 | $ 9,490 | $ 8,331 | $ 9,437 | $ 8,847 | 39,209 | 36,105 | 25,528 |
Other comprehensive income (loss) | 1,577 | (895) | (104) | ||||||||
Total comprehensive income | 40,786 | 35,210 | 25,424 | ||||||||
RBB Bancorp | |||||||||||
Consolidated Statements of Income and Comprehensive Income | |||||||||||
Interest income | 15 | ||||||||||
Interest expense | 7,697 | 4,083 | 3,629 | ||||||||
Noninterest expense | 1,300 | 1,255 | 642 | ||||||||
Loss before equity in undistributed income of subsidiaries | (8,997) | (5,323) | (4,271) | ||||||||
Income before income taxes | 36,401 | 34,403 | 23,492 | ||||||||
Income tax benefit | 2,808 | 1,702 | 2,036 | ||||||||
Net income | 39,209 | 36,105 | 25,528 | ||||||||
Other comprehensive income (loss) | 1,577 | (895) | (104) | ||||||||
Total comprehensive income | 40,786 | 35,210 | 25,424 | ||||||||
RBB Bancorp | Royal Business Bank | |||||||||||
Consolidated Statements of Income and Comprehensive Income | |||||||||||
Equity in undistributed income | 45,324 | 39,198 | 27,620 | ||||||||
RBB Bancorp | Royal Asset Management | |||||||||||
Consolidated Statements of Income and Comprehensive Income | |||||||||||
Equity in undistributed income | $ 74 | $ 528 | $ 143 |
Parent Only Condensed Financi_5
Parent Only Condensed Financial Information - Schedule of Parent Only Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 39,209 | $ 36,105 | $ 25,528 |
Net cash provided by (used in) operating activities | 476,468 | (84,648) | 28,783 |
Cash flows from investment activities: | |||
Net cash acquired (outlay) in connection with acquisition | 25,073 | ||
Net cash used in investing activities | (219,353) | (322,390) | (264,446) |
Cash flows from financing activities: | |||
Issuance of subordinated debentures, net of issuance costs | 54,018 | ||
Issuance of common stock, net of issuance costs | 60,210 | ||
Dividends paid | (8,033) | (5,753) | (5,118) |
Common stock repurchased, net of repurchased costs | (3,190) | ||
Stock options exercised | 2,817 | 9,629 | 2,296 |
Net cash (used in) provided by financing activities | (223,037) | 404,675 | 266,998 |
Net increase (decrease) in cash and cash equivalents | 34,078 | (2,363) | 31,335 |
Cash and cash equivalents at beginning of period | 147,685 | 150,048 | 118,713 |
Cash and cash equivalents at end of period | 181,763 | 147,685 | 150,048 |
RBB Bancorp | |||
Cash flows from operating activities: | |||
Net income | 39,209 | 36,105 | 25,528 |
Net amortization of other | 508 | 268 | 235 |
Provision for deferred income taxes | 513 | (1,905) | 1,807 |
Undistributed income of subsidiaries | (45,398) | (39,726) | (27,763) |
Change in other assets and liabilities | (1,981) | 3,492 | (3,923) |
Net cash provided by (used in) operating activities | (7,149) | (1,766) | (4,116) |
Cash flows from investment activities: | |||
Net cash acquired (outlay) in connection with acquisition | (41,358) | ||
Investment in subsidiaries | (15,000) | (25,000) | |
Net cash used in investing activities | (56,358) | (25,000) | |
Cash flows from financing activities: | |||
Issuance of subordinated debentures, net of issuance costs | 54,018 | ||
Issuance of common stock, net of issuance costs | 60,210 | ||
Dividends paid | (8,033) | (5,753) | (5,118) |
Common stock repurchased, net of repurchased costs | (3,190) | ||
Stock options exercised | 2,817 | 9,630 | 2,296 |
Net cash (used in) provided by financing activities | (8,406) | 57,895 | 57,388 |
Net increase (decrease) in cash and cash equivalents | (15,555) | (229) | 28,272 |
Cash and cash equivalents at beginning of period | 45,540 | 45,769 | 17,497 |
Cash and cash equivalents at end of period | $ 29,985 | $ 45,540 | $ 45,769 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event - PGB $ in Millions | Jan. 10, 2020USD ($)Branch |
Subsequent Event [Line Items] | |
Business acquisition, date | Jan. 10, 2020 |
Cash consideration | $ 32.9 |
Illinois | |
Subsequent Event [Line Items] | |
Business Combination, Identifiable assets acquired | 217.6 |
Deposits | $ 192.3 |
Number of branches | Branch | 3 |
Quarterly Income Statements (_3
Quarterly Income Statements (Unaudited) - Schedule of Quarterly Condensed Income Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 33,907 | $ 34,669 | $ 35,943 | $ 37,206 | $ 35,181 | $ 24,473 | $ 22,284 | $ 20,177 | $ 141,725 | $ 102,115 | $ 74,104 |
Interest expense | 10,784 | 11,157 | 11,626 | 11,294 | 9,599 | 5,857 | 4,457 | 3,732 | 44,861 | 23,645 | 13,938 |
Net interest income | 23,123 | 23,512 | 24,317 | 25,912 | 25,582 | 18,616 | 17,827 | 16,445 | 96,864 | 78,470 | 60,166 |
Provision for credit losses | 659 | 824 | 357 | 550 | 1,890 | 1,695 | 700 | 184 | 2,390 | 4,469 | (1,053) |
Net interest income after provision (recapture) for credit losses | 22,464 | 22,688 | 23,960 | 25,362 | 23,692 | 16,921 | 17,127 | 16,261 | 94,474 | 74,001 | 61,219 |
Noninterest income: | 5,823 | 2,799 | 5,496 | 4,202 | 5,489 | 2,105 | 2,793 | 2,455 | 18,320 | 12,842 | 13,201 |
Noninterest expense | 13,463 | 13,786 | 14,899 | 15,325 | 15,503 | 8,654 | 8,191 | 8,289 | 57,473 | 40,637 | 27,623 |
Income before income taxes | 14,824 | 11,701 | 14,557 | 14,239 | 13,678 | 10,372 | 11,729 | 10,427 | 55,321 | 46,206 | 46,797 |
Income tax expense | 4,149 | 3,689 | 4,415 | 3,859 | 4,188 | 2,041 | 2,292 | 1,580 | 16,112 | 10,101 | 21,269 |
Net income | $ 10,675 | $ 8,012 | $ 10,142 | $ 10,380 | $ 9,490 | $ 8,331 | $ 9,437 | $ 8,847 | $ 39,209 | $ 36,105 | $ 25,528 |
Net income per share | |||||||||||
Basic | $ 0.53 | $ 0.40 | $ 0.51 | $ 0.52 | $ 0.48 | $ 0.50 | $ 0.58 | $ 0.55 | $ 1.96 | $ 2.11 | $ 1.81 |
Diluted | $ 0.52 | $ 0.39 | $ 0.50 | $ 0.51 | $ 0.47 | $ 0.48 | $ 0.54 | $ 0.52 | $ 1.92 | $ 2.01 | $ 1.68 |
Repurchase of Common Stock - Ad
Repurchase of Common Stock - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Equity [Abstract] | |
Number of shares authorized to be repurchased | 1,000,000,000,000 |
Number of shares repurchased during period | 169,785 |
Share repurchased average price per share | $ / shares | $ 18.79 |